FBM KLCI slides in early trade

KUALA LUMPUR: The FBM KLCI slipped in early trade on Monday, Jan 25, kicking off the new week on a weak note in line with the weaker key Asian markets and the sharp fall on Wall Street last week.

At 9.03am, the FBM KLCI was down 6.42 points to 1,294.03. Turnover was 24.6 million shares valued at RM18.4 million. There were 30 gainers and 143 losers.

SP Setia fell 15 sen to RM4, YTL 12 sen to RM7.41 and MPI 12 sen to RM6.50 while IOI Corplost nine sen to RM5.40. Latexx gave up 11 sen to RM3.71 and HLFG seven sen to RM7.90 and Public Bank foreign six sen lower to RM12.

OSK Investment Research said the FBM KLCI tried very hard to maintain a posture at above the 1,300-mark last Friday following the sharp drop in the US market for the second consecutive session last Thursday. The 1,300-level was previously a formidable resistance created in 2008.

As this level was recently taken out, a close below this level so soon would have disappointed the bulls and may cause the market to even fall further, possibly back towards the 50-day MAV line.

"Anyhow, last Friday's reversal did no harm to the solid uptrend which extends all the way from
last year's low in March.

"At this juncture, as the key index is still a safe distance from re-testing the crucial support line represented by the 50-day MAV line, we maintain our bullish bias," it added.

From the current level, the 1,305-level is the immediate resistance while the next resistance is at the 1,344.5-level. To the downside, the 1,300-level is an important support followed by the 50-day MAV line, which is now situated at the 1,276-level.