FBM KLCI down after US shares fell overnight

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KUALA LUMPUR (Aug 24): The FBM KLCI opened lower today on profit taking and after US shares fell overnight as global investors took cue from news on a new round of tariffs in the China-US trade spat. 

At Bursa Malaysia today, the KLCI opened 4.52 points or 0.25% lower at 1,806.35 at 9am. At 9:15am, the KLCI dropped 6.97 points to 1,803.90 as investors took profit after the index rose 12.76 points yesterday to close at 1,810.87. 

Today, TA Securities Holdings Bhd wrote in a note : "The two-tier performance on the local market, with blue chips rising in contrast to lower liners and small caps which remain in correction mode, could persist if local fund buying support sustain, but concerns over escalating US-China trade tensions should encourage profit-taking." 

US shares fell overnight. Reuters reported that Wall Street's major indexes fell on Thursday as trade-sensitive stocks were hit by a fresh round of tariffs in the trade dispute between the US and China. Despite ongoing talks, the two countries imposed tariffs on US$16 billion worth of each other's goods.

The Dow Jones Industrial Average fell 76.62 points, or 0.3%, to 25,656.98, the S&P 500 lost 4.84 points, or 0.17%, to 2,856.98 and the Nasdaq Composite dropped 10.64 points, or 0.13%, to 7,878.46.