KLCI to drift sideways, take cue from Wall Street retreat

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KUALA LUMPUR (May 16): The FBM KLCI is expected to drift sideways today, in line with the weaker overnight close at Wall Street where stocks fell on inflation concerns and investors fretted about looming trade talks between the United States and China.

The yield on the benchmark U.S. 10-year Treasury note hit its highest in about seven years on Tuesday on the heels of a report that indicated a pick-up in consumer spending, lifting the dollar to its strongest level this year and weighing on stocks, according to Reuters.

The 10-year yield neared 3.1 percent, blowing through the 3 percent level, as a wave of selling propelled the yield through a key technical support, it said.

On Wall Street, the Dow Jones Industrial Average fell 193.00 points, or 0.78 percent, to 24,706.41, the S&P 500 lost 18.68 points, or 0.68 percent, to 2,711.45 and the Nasdaq Composite dropped 59.69 points, or 0.81 percent, to 7,351.63, said Reuters.

Based on corporate announcements and news flow yesterday, companies in focus today may include the following: Utusan Melayu (Malaysia) Bhd, Media Prima Bhd, Hartalega Holdings Bhd, Matrix Concepts Holdings Bhd, Enra Group Bhd, Star Media Group Bhd, Tenaga Nasional Bhd, Cahya Mata Sarawak Bhd, Southern Steel Bhd and KKB Engineering Bhd.