Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 19): The FBM KLCI fell 0.39% in early trade this morning, tracking losses at regional markets.

At 9.05am, the FBM KLCI fell 6.67 points to 1,731.34.

The top losers included KESM Industries Bhd, Malaysia Airports Holdings Bhd, Far East Holdings Bhd, ViTrox Corp Bhd, Apollo Food Holdings Bhd, Tenaga Nasional Bhd, Petronas Chemicals Group Bhd, Carlsberg Brewery Malaysia Bhd, Top Glove Corp Bhd and IOI Corp Bhd.

Asian stocks posted further losses Friday following a weak U.S. equity session as investors worried anew about the impact of higher interest rates and the trade war on the outlook for earnings. Treasuries, which had contributed to the slump earlier this week, held gains, according to Bloomberg.

The MSCI Asia Pacific Index is heading for its worst three-week slide since January 2016. Shares in Japan, South Korea and Australia fell and futures pointed to losses in Hong Kong after the S&P 500 Index fell more than 1 percent and the Nasdaq 100’s drop topped 2 percent. Chinese stocks are also seen falling further as investors dump the shares of cash-squeezed companies, with the Shanghai benchmark down 30 percent from a January high. The offshore yuan continued this week’s slide, and the dollar held overnight gains, it said.

Hong Leong IB Research in a traders’ brief said as negative catalysts such as trade disputes, interest rates and 10-year Treasury yield that has risen sharply recently were taking the limelight in the news flow, the markets could trade on a heightened volatility over the near term.

“Nevertheless, should there be any better-than-expected US corporate earnings this month, it should cushion the downside risk on Wall Street.

“We believe market participants will need to digest the 11MP midterm review presented by Tun Dr Mahathir, suggesting that the economy may grow at a slower pace of 4.5%-5.5% and fiscal deficit targeted to be at 3% to GDP in 2020.

“While the realignment and re-calibration of is positive towards Malaysia’s fiscal status by 2020, the short term market movements on the FBM KLCI is likely to trend sideways ahead of the Budget 2019 that will be tabled on 2nd of November,” it said.

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