Friday 29 Mar 2024
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KUALA LUMPUR (Dec 11): The FBM KLCI erased losses in volatile trade after opening lower today on bargain hunting following the index's substantial decline yesterday.   

At 9am today, the KLCI opened 6.13 points lower at 1,657.18 before rising 0.34 point to 1,663.65. Yesterday, the KLCI closed down 17.23 points at 1,663.31 as world economic growth and US-China trade spat concerns weighed on global stock markets. The drop in Malaysian plantation shares also dragged the KLCI lower.

Today, Hong Leong Investment Bank Bhd wrote in a note the "upside of the KLCI is likely to be capped near 1,680 and could trend lower as it has violated the previous support at 1,680."

External factors will be closely watched as investors predict the direction of Malaysian shares. Reuters reported the pound hovered near 20-month lows on Tuesday, as political turmoil deepened in Britain with a key vote on Brexit being delayed while US shares staged a late rebound in a positive signal for Asian markets. It was reported that British Prime Minister Theresa May abruptly postponed a parliamentary vote on her Brexit agreement, a move that hit risk assets globally and sent the pound spiralling to US$1.2505. 

It was reported that disappointing data from major economies including China and Japan have fanned worries about global economic activity. The ongoing Sino-US trade battle has also clouded the outlook for world growth.

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