KLCI falls 0.53% on profit taking; regional markets mixed

KUALA LUMPUR (Dec 4): The main index of Bursa Malaysia fell 0.53% in the mid-morning as market breadth turned tepid on profit taking, while regional markets traded mixed.

At 10am, the FBM KLCI had fallen 8.60 points to 1,619.66.

Losers led gainers by 524 to 375, while 455 counters traded unchanged. Trading volume was 4.39 billion shares valued at RM1.62 billion.

The top losers included Petronas Dagangan Bhd, PPB Group Bhd, Euro Holdings Bhd, Nestle (Malaysia) Bhd, Petronas Gas Bhd, Public Bank Bhd, Magni-Tech Industries Bhd, Hartalega Holdings Bhd and AEON Credit Service (M) Bhd.

The actively traded stocks included Yong Tai Bhd, Pegasus Heights Bhd, Ho Wah Genting Bhd, Metronic Global Bhd, Kanger International Bhd, Sapura Energy Bhd and KNM Group Bhd.

The gainers included Hengyuan Refining Company Bhd, Petron Malaysia Refining & Marketing Bhd, Choo Bee Metal Industries Bhd, Yinson Holdings Bhd and APM Automotive Holdings Bhd.

Bloombergsaid Asian stocks began the day in a mixed fashion as investors weighed the recent strength of global equities against signs of possible further lockdowns in the US, a move that could threaten the economic recovery.

The US dollar held its retreat, it said.

Inter-Pacific Research Sdn Bhd said after a stronger-than-expected jump, profit taking is likely to set in ahead of the weekend.

In its daily bulletin today, it said the recent market jump was overdone, with valuations of 19 times and 16.7 times for 2020 and 2021 respectively, already exceeding its historical averages and the gains had also mostly reflected the potential earnings recovery for next year, thereby leaving less room for further near-term gains.

It said any pullback would also be deemed healthy, for some of the gains to be digested and a base to be built up, before potential window-dressing activities later in the month.

“For now, we see the key index retreating to the around 1,600-1,610 levels, while the resistance levels are at 1,636 and 1,650,” it said.