Friday 29 Mar 2024
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KUALA LUMPUR (Dec 19): The FBM KLCI was flat in early trade this morning as regional markets stayed tentative, as external headwinds continue to weigh on investor sentiment.

At 9.05am, the FBM KLCI was up 1.44 points to 1,636.75.

The early gainers included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, British American Tobacco (M) Bhd, PPB Group Bhd, Kuala Lumpur Kepong Bhd, IHH Healthcare Bhd, Westports Holdings Bhd, Dufu Technology Bhd and MISC Bhd.

Asian share markets played second fiddle to bonds on Wednesday as a spectacular fall in the price of oil fanned speculation the U.S. Federal Reserve might be done with tightening after its policy meeting later in the day, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2 percent in hesitant early trade. Japan's Nikkei eased 0.1 percent, while E-Mini futures for the S&P 500 inched up 0.17 percent, it said.

Hong Leong IB Research in a traders’ brief said that overall, Wall Street is expected to continue experiencing bouts of volatility as the Fed is widely expected to raise rates by 25 basis points tomorrow.

“However, expectations for further rate hikes in 2019 have dampened and could cushion further slump in financial markets (likely to reduce the quantum of previously scheduled 3 hikes) amid concerns of a potential slowdown in economic growth. Key resistances are 24000-24300 while supports are near 23000-23300.

“On the local front, sentiment is likely to remain tepid as local and external headwinds should continue to buffet domestic equities.

“Rising US-China trade turmoil and a slowing global economy, coupled with subdued commodity prices that exacerbate Malaysia’s persistent weak fiscal profile and the weakening corporate earnings are main drags. Major supports are set at 1614-1626 whilst resistances are near 1665-1678,” it said.

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