KLCI falls nearly 14pts at opening, but seen overdone

KUALA LUMPUR: Malaysia's blue chips fell at the start of Friday's
trade as the market extended its consolidation phase, with investors
seen taking profit on banks and Genting Bhd, but the selling could be overdone as the broader market displayed resilience and trading volume low.
At
9am, the FBM KLCI was down 13.76 points to 1,752.31. Turnover was 18.86
million shares valued at RM15.39mil. There were 70 gainers, 36 losers
and 86 counters unchanged.
Maybank Investment Bank Research
said the KLCI's resistance level of 1,766 and 1,826 will cap market
gains, whilst obvious support areas are located at 1,718 and 1,764.
It said the KLCI's recent swings were: 1,699.68 (high), 1,597.00 (low), 1,664.39 (high) and 1,613.94 (low).
“We
prefer to take a Trading' stance on the index as a gap-up move between
1,718.44 (previous all-time high) and 1,743.14 (Monday's low) has
emerged. As the key blue chips were softer, there were rotational
activities into mid-cap and lower liner stocks. Pre-weekend
profit-taking may emerge today,” it said.
Petronas Dagangan fell 56 sen to RM23.80, Genting 38 sen to RM10.42 while Petronas Chemicals gave up 20 sen to RM6.38 and Tenaga fell nine sen to RM8.18.
Among the banks, HL Bank lost 28 sen to RM14.32, Maybank eight sen to RM9.90 and CIMB six sen to RM8.25.
As for plantations, heavyweight Sime Darby lost 23 sen to RM9.28 and PPB Group six sen lower at RM12.84.