Friday 29 Mar 2024
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KUALA LUMPUR (Oct 9): The FBM KLCI got off to a lacklustre start this morning, tracking the muted regional markets.

At 9.05am, the FBM KLCI shed 2.91 points to 1,772.84.

The early losers included Kuala Lumpur Kepong Bhd, Top Glove Corp Bhd, Allianz Malaysia Bhd, Petronas Chemicals Group Bhd, Press Metal Aluminium Holdings Bhd, Hartalega Holdings Bhd, KESM Industries Bhd, CIMB Group Holdings Bhd and Dufu Technology Bhd.

Asian stocks opened lower on Tuesday following a mixed U.S. session as investors took stock of a friction-filled visit by the American secretary of state to Beijing. Ten-year Treasury yields were steady around seven-year highs as they resumed trading after a holiday, according to Bloomberg.

Japanese shares declined as traders came back after a long weekend, hurt by a strengthening in the yen. Australian stocks dropped, while Hong Kong futures were also lower. China’s markets remain a focal point after stocks slumped on Monday and the yuan weakened past 6.9 per dollar in onshore trading. Overseas investors dumped $1.4 billion of domestic Chinese shares through exchange links with Hong Kong Monday, it said.

Hong Leong IB Research in a traders’ brief said in the US, with the unsettled trade developments between the US and China as well as the concerns over interest rate up-cycle outlook, these may extend the selling pressure on Wall Street.

“Also, traders may be focusing on the upcoming reporting season in the US that will be starting this week. Hence, the Dow’s upside is likely to be limited around 27,000.

“We believe the sentiment on the broader market could remain negative amid the challenging outlook on construction sector.

“Also, investors could be awaiting more clarity during the 11MP midterm review (18 Oct) and Budget 2019 (2 Nov). Hence, we believe that traders should stay cautious on construction stocks as cancellation of selected projects may pose downside risk on their corporate earnings moving forward,” it said.

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