DJ MARKET TALK: Malaysia's KLCI Down 0.4%; May Fall Towards 1563 - HL

DJ MARKET TALK: Malaysia's KLCI Down 0.4%; May Fall Towards 1563 - HL

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0242 GMT [Dow Jones] Malaysia's KLCI is down 0.4% at 1593.38 as investors continue to lighten their portfolios ahead of the year-end as well as a general elections that must be held in the country by early next year; so far this month, the benchmark index has declined almost 5%, spending most of the month trading in negative territory. "In the near term, trading sentiment on Bursa Malaysia will remain bearish, mainly attributable to the uninspiring ongoing 3Q results season and local election risks," says Hong Leong IB. The house tips the KLCI to drift towards 1583 and 1563 before a more sustainable rebound kicks in. Market breadth is negative at 310 losers and 134 gainers with 325.0 million shares changing hands. Among top losers on the benchmark index, Petronas Chemicals (5183.KU) is down 2.6% at MYR5.93, Genting Malaysia (4715.KU) is down 2.3% at MYR3.43 and UEM Land (5148.KU) is down 0.9% at MYR2.13.