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Friday, October 20, 2017

Market Daily Report: FBM KLCI down on foreign selling

KUALA LUMPUR (Oct 20): Foreign selling put pressure on share prices and dragged down FBM KLCI, which closed 3.34 points or 0.19% lower at 1,740.65 points today.

The benchmark index has been on the losing streak for four consecutive trading days; it drifted to a six-month low. Hope of a strong pre-budget rally is waning. The index has declined 2.83% from the recent peak of 1,789.86 points on Sept 12, 2017.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told that the downtrend in KLCI for the past few days was caused by foreign selling, and he is expecting the trend to continue.

Wong noted that the global sentiment is good, but somehow the KLCI is not moving in tandem with it.

"The KLCI needs some catalysts such as corporate earnings. And we will see whether the upcoming Budget 2018 will have any impact on the corporate earnings," Wong added.

Across the board, some 2.62 billion shares worth RM2.24 billion were traded today. However, gainers outnumbered losers in 425 to 390.

Elsewhere in Asia, Japan's Nikkei 225 rose 0.04%, South Korea's Kospi climbed 0.67% while Hong Kong's Hang Seng was up 1.17%.

Reuters reported Japan's Nikkei share average rose for the 14th straight session on Friday to post its longest winning streak in over 50 years, as a weaker yen helped stocks recoup earlier losses.

During Asian trade, the US dollar appreciated 0.6% to 113.16 Japanese yen after news that the US Senate voted on Thursday to approve a budget blueprint for the 2018 fiscal year. This could pave the way for Republicans to pursue a tax-cut package without Democratic support, Reuters reported.

Source: The Edge

Thursday, October 19, 2017

Market Daily Report: FBM KLCI slides on profit taking in blue chips

KUALA LUMPUR (Oct 19): The FBM KLCI closed 5 points or 0.29% lower today as investors took profit, mainly in telecommunications, banking, and oil and gas heavyweights. At 5pm, the KLCI settled at 1,743.99 points.

TA Securities technical analyst Steven Soo told that there has been aggressive selling of blue chips in the sectors mentioned, which has affected the broader market.

The unexpected resignation of Malaysia Airlines Bhd's chief executive officer Peter Bellew, Soo said, has also hurt sentiment, which resulted in a pullback of foreign investors' confidence and exposure in the local equities market, which have been largely on the rise.

"[And] as it's a Deepavali week, most market players are away," he added.

Soo also said with no upside catalysts, he is not seeing any buying support in the market presently. The benchmark index has also been ignoring the trend in global markets.

"The trading volume is elevated, it's quite high. The value, however, is not high. This shows that trading is focused on cheaper stocks. I expect this trend to continue tomorrow," said Soo.

Today, Bursa Malaysia saw 3.16 billion shares, worth RM2.51 billion, traded. There were 342 gainers and 502 decliners.

Across in Asia, Japan's Nikkei 225 rose 0.4%, South Korea's Kospi fell 0.4% while Hong Kong's Hang Seng was down 1.92%.

Reuters reported Japan's Nikkei share average rose for the 13th straight session on Thursday, establishing its longest winning streak since 1988, while scaling a fresh 21-year peak as gains in global stocks and a weaker yen cheered investors.

Source: The Edge