Noon Market KLCI slumps 1.38% on slower 1Q GDP growth

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KLCI slumps 1.38% on slower 1Q GDP growth

By Surin Murugiah / theedgemarkets.com   | May 13, 2016 : 1:10 PM MYT


KUALA LUMPUR (May 13): The FBM KLCI slumped 1.38% at the midday break today, after Malaysia’s gross domestic product growth fell to 4.2% from 5.7% a year earlier. Sentiment at the local market was also dented by the lower regional market.
At 12.30pm, the FBM KLCI lost 22.45 points to 1,626.53.
Losers thumped gainers by 573 to 199, while 291 counters traded unchanged. Volume was 1.03 billion shares, valued at RM1.13 billion.
The top losers included Malayan Banking Bhd, CIMB Group Holdings Bhd, Petronas Chemicals Group Bhd, Hong Leong Financial Group Bhd, Sime Darby Bhd, Ajinomoto Malaysia Bhd, UMW Holdings Bhd, Genting Plantations Bhd, Kuala Lumpur Kepong Bhd, IOI Corporation and Genting Bhd.
The active included Vivocom International Holdings Bhd, CIMB, Bumi Armada Bhd, AirAsia X Bhd, Maybank, Sumatec Resources Bhd and SapuraKencana Petroleum Bhd.
The gainers included Dutch Lady Milk Industries Bhd, Hong Leong Industries Bhd, Heineken Malaysia Bhd, IHH Healthcare Bhd, Public Bank Bhd, P.I.E. Industrial Bhd, Pestech International Bhd and Negri Sembilan Oil Palms Bhd.
Asian shares fell on Friday after a rocky performance on Wall Street, while the yen nursed losses as traders wagered that Bank of Japan will add to its massive stimulus before too long, according to Reuters.
Major U.S. stock indexes closed mixed on Thursday, with the Nasdaq Composite down 0.49% as Apple shares skidded to a two-year low on concerns about iPhone demand, it said.
Kenanga IB Research said that on the FBM KLCI’s daily chart, the key index is currently retesting its immediate resistance level of 1,650 (R1), while Stochastic and Relative Strength Iindicators are trending up to lend a supportive hand on the key index’s recent reversal play.
“Nonetheless, the key index had yet to stage a breakout away from the R1 level, which we deem vital for the FBM KLCI to trace higher towards 1,680 (R2).
“From here, we view that the key index may go for a second attempt to retest the R1 level later today.
“Failure to breach the aforesaid level could induce the benchmark index to consolidate sideways, where supports are noted at 1,640 (S1) followed by 1,620 (S2),” it said.