Friday 29 Mar 2024
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KUALA LUMPUR (Dec 17): The FBM KLCI fell 20.34 points or 1.22% today with the broader market across Bursa Malaysia amid global economic growth concerns. Analysts said today the KLCI showed oversold technical indicators and weak buying momentum after US equities closed lower on Friday.

At Bursa today, the KLCI closed at 1,641.62 after a sharp drop in the final trading minutes. At a glance, the KLCI ended at its intraday low after the share prices of KLCI-linked Public Bank Bhd and Tenaga Nasional Bhd fell sharply during the final trading minutes.

"The KLCI started the week on a weaker note mainly due to the sell off from the US market," Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

TA Securities Holdings Bhd wrote in a note on the KLCI today: "Failure of last week's relief rebound to reverse extreme bearish market conditions does not bode well for the sustainability of any technical rebound attempts in the immediate term. Note also that despite excessively oversold technical conditions, bearish momentum prevailed due to the current weak buying momentum, as most investors preferred to be sidelined given the multiple external uncertainties. Key factors to watch are cues from global growth conditions, US-China trade talks and the final meeting of the year by the US central bank to decide on monetary policy."

Across Bursa today, 1.47 billion shares worth RM1.18 billion were traded.

Top decliners included Public Bank and Tenaga. Public Bank shares fell 52 sen to close at RM24.22 while Tenaga dropped 34 sen to RM12.92.

The Bursa Malaysia Small Cap Index fell by larger quantum versus the KLCI. The small cap index fell 253.50 points or 2.19% to close at 11,303.25 as world stock markets took cue from global economic growth concerns.

In the US, Reuters reported that on Friday, Wall Street's three major indexes tumbled and the Dow confirmed a correction as weak data from China and Europe stoked fears of a global economic slowdown, while Johnson & Johnson shares were the biggest drag after the newswire reported the company knew for decades that its Baby Powder contained asbestos.

It was reported that the Dow Jones Industrial Average fell 496.87 points, or 2.02%, to 24,100.51, the S&P 500 lost 50.59 points, or 1.91%, to 2,599.95 while the Nasdaq Composite dropped 159.67 points, or 2.26%, to 6,910.67.

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