KUALA LUMPUR: The FBM KLCI extended its retreat below the 1,600 psychological level over the course of morning trading as investors took profit off a seven-day winning streak.
At 12.30pm, the country’s benchmark index was down 10.32 points to 1,591.06 with financial and telco counters leading the decline.
While the profit-taking was expected given the recent surge in equities prices, there remains optimism over the continuation of the uptrend after a breather.
“Upside may be capped as the market may digest the recent gains before more sectors show signifant recovery considering the recent overbought signals.
“Nevertheless, we believe resumption of business activities should bode well for the economy as more states are moving into Phase 3-4 of the National Recovery Plan moving forward,” said Malacca Securities Research.
In the financial sector, Maybank shaved eight sen to RM8.32 and Public Bank also lost eight sne to RM4.10. CIMB was up one sen to RM4.92 while Hong Leong Bank rose 22 sen to RM19.40.
Among telcos, Axiata fell eight sen to RM4.06, Maxis dropped 11 sen to RM4.58 and Digi slid seven sen to RM4.33.
MISC was down five sen to RM7.5 as was Top Glove, sliding five sen to RM3.95,
while Hartalega fell 21 sen to RM7.17.
Asian market retraced earlier losses as the investors shrugged off earlier worries over weak data from major economies.
Shanghai’s composite index was up 0.9% while Hong Kong’s Hang Seng rose 0.6%.
Japan’s Nikkei gained 1.3% and South Korea’s Kospi added 0.2%. Australia’s ASX200 was down 0.3%.