KUALA LUMPUR: Blue chips fell early Monday, tracking the weaker key Asian markets, with the key FBM KLCI down more than 25 points, the biggest decline at the start of trade in many months.
At 9.05am, the KLCI was down 25.10 points or 1.34% to 1,845.38. Turnover was 312.81 million shares valued at RM113.83mil. Decliners hammered advancers 594 to 28 while 158 counters were unchanged.
Asian share markets stumbled on Monday as fears of resurgent inflation battered bonds, toppled Wall Street from record highs and sparked speculation central banks globally might be forced to tighten more aggressively, Reuters reported.
Japan’s Nikkei slid 2.2%, while Australia’s main index eased 1.3%. MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.8 percent for its third straight session of losses.
US stock futures opened weaker on Sunday, extending the rout equity markets experienced on Friday when the benchmark S&P 500 and Dow Jones Industrial average notched their worst week since early January 2016.
Kenanga Investment Bank Research said the technical outlook for the KLCI remains positively bias with simple moving averages (SMAs) in a “Golden Crossover” state whilst momentum indicators display uptrend.
“Anticipate a healthy pullback following sell-off in US before an eventual move towards resistance level of 1,888 (R1) and 1,900 (R2) – a level near all-time high recorded in July 2014.
“Support can be identified at 1,840 (S1) and psychological level of 1,800 (S2),” it said.
Among the KLCI stocks Petronas Dagangan fell 38 sen to RM25.10, Hong Leong Bank 24 sen to RM18.56 and CIMB 23 sen lower at RM7.02.
KESM was the top loser, down RM1.34 to RM18.06 and Vitrox 31 sen to RM5.80.
Top Glove lost 23 sen to RM9.12 and KL Kepong 22 sen to RM25.04.
Hengyuan fell 46 sen to RM13.16 and Petron 40 sen lower at RM11.42.
Nestle bucked the trend, up 60 sen to RM116.50 while Axis REIT gained three sen to RM1.40. – thestaronline