KLCI sinks deeper into the red at lunch break

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KUALA LUMPUR: The FBM KLCI remained in negative territory at midday amid cautious sentiments across the region.


At midday, the 30-stock index declined 5.44 points, or 0.39% to 1,373.21, dragged down by losses in energy stocks. The index earlier slipped to its intra-morning low of 1,369.41.

The broader market sagged, with gainers overtaking losers 467 to 249 while 394 counters were unchanged. Turnover was 1.6 billion shares valued at RM816.7mil.

Nestle slid 60 sen to RM131.50, PETRONAS Dagangan eased 56 sen to RM21.74, Panasonic Manufacturing fell 46 sen to RM18.68 and Harrisons declined 25 sen to RM9.20.

Among the gainers, Hong Leong Financial Group rose 20 sen to RM17.22, Hextar Technologies gained 20 se to RM26.20, Heineken rose 14 sen to RM26.44 and Kuala Lumpur Kepong advanced 12 sen to RM21.72.

Rakuten Trade expects trading on the local bourse to stay quiet in the absence of buying catalysts thus expect the index to trend within the 1,375-1,385 range today.


“The energy sector may counter some headwinds today amid the higher US 10-year yield implicating more hikes in rates from the upcoming FOMC meeting,” it said.

Meanwhile, Hong Leong Investment Bank Research said KLCI’s undemanding valuation at CY2023’s 13.2x P/E coupled with grossly oversold position and all-time low foreign shareholding (end-May: 20.0%) should contribute to a relief rebound in the near term.

However, it said sustainability is questionable (support:1,350-1,360, resistance: 1,391-1,400-1,413) on renewed focus on the key central banks’ policy decisions in the next few days.

“Other major concerns are continued RM weakness along with persistent foreign outflows, China’s sluggish economic data, potential macro and earnings disappointments’ after an underwhelming 1Q23 results season and rising political risk premium ahead of the upcoming six states’ elections (widely expected in July),” the research house said.

– The Star

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