KLCI falls 1.77%, fights to stay above 1,700 level

-A +A

KUALA LUMPUR (Dec 15): The FBM KLCI fell 1.77% at mid-morning today amidst bearish external outlook and falling crude oil prices.

At 10.01am, the FBM KLCI lost 30.20 points to 1,702.79.

The top losers included Kuala Lumpur Kepong Bhd, British American Tobacco (M) Bhd, Aeon Credit Services (M) Bhd, Petronas Dagangan Bhd, LPI Capital Bhd, Panasoni Manufacturing Malaysia Bhd, PPB Group Bhd, Guiness Anchor Bhd, UMW Holdings Bhd and Dutch Lady Milk Industries Bhd.

Sumatec Resources was the most actively traded counter with 26.92 million shares done. The stock fell 8.11% or 1.5 sen to 17 sen.

The other actively traded stocks included Berjaya Corporation Bhd, Newly-listed Kronologi Asia Bhd, SapuraKencana Petroleum Bhd, Bumi Armada Bhjd and Sona Petroleum Bhd.

The gainers included Faber Group Bhd, Syarikat Takaful Malaysia Bhd, United Plantations Bhd and Danainfra Nasional Bhd.

Regionally, oil prices fell more than two percent to 5 1/2-year lows early on Monday on concerns about supply glut and slower global growth, feeding fears for energy and commodities producers and exporters, according to Reuters.

Investors are nervous after U.S. shares posted their biggest weekly fall in 2 1/2-years last week on losses led by energy sector and as they expect the U.S. Federal Reserve to hint this week it is getting closer to raising interest rates, it said.

Hong Leong IB Research said pressures are mounting for the FBM KLCI to retest 1,700 this week, given bearish external outlook and Malaysia fragile local fundamentals amid freefall in commodity prices

“A breakdown below 1,700 will see index to visit our technical objective near 1670 zones.

“Technical rebound targets are 1750-1778,” it said.