KLCI retreats in line with regional and US markets

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KUALA LUMPUR (Jan 29): The FBM KLCI retreated in early trade on Thursday in line with the dip at regional markets and teh overnight fall at Wall Street.

At 9.02am, the FBM KLCI shed 3.89 points to 1,791.99, weighed by heavyweights Tenaga Nasional Bhd and Telekom Malaysia Bhd as well as index-linked banking stocks.

The top losers included Dutch Lady Milk Industries Bhd, Tenaga Nasional Bhd, Lafarge Malaysia Bhd, Telekom Malaysia Bhd,PPB Group Bhd, Petronas Dagangan Bhd, AMMB Holdings Bhd, Hong Leong Financial Group Bhd and Malayan Banking Bhd.

Asian shares retreated on Thursday after the Federal Reserve unexpectedly lifted its view on the economy, signalling that the U.S. central bank remains firmly on track with plans to raise interest rates this year, according to Reuters.

The Fed said falling energy prices boosted household purchasing power, even as it acknowledged a decline in certain inflation measures and added international developments would be taken into consideration, it said.

JF Apex Securities Research in a market preview Thursday said U.S. stocks declined overnight, a day after the S&P 500 took its biggest hit in more than three weeks, as the energy sector expanded losses after U.S. crude settled at its lowest since March 2009.

Meanwhile, it said European markets ended mixed after seesawing for much of the session, with indexes pressured by a staggering slump in Greek banking stocks.

“On the local market, the FBM KLCI lost 7.29 points to 1795.88 points.

“Asian indices could see modest losses today following a sell-off on Wall Street overnight as U.S. crude tumbled to near six-year lows.

“We expect the KLCI to be negative today after it failed to break its resistance of 1830 points,” it said.