KLCI reverses loss at 11th hour after day-long pressure from trade war woes

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KUALA LUMPUR (July 5): The FBM KLCI reversed its losses at 11th hour today, after going through much pressure as investors were concern about the imminent trade war between the US and China.

At 5pm, the benchmark index settled 2.20 points or 0.13% higher at 1690.65 points, after ranging between 1682.35 points and 1691.62 points during trading hours.

When contacted, CIMB Research analyst Nick Foo Mun Pang told theedgemarkets.com that the local stock market could see a rebound in the near term due to being oversold, but he remained wary of the medium- to long-term prospects, due to internal and external uncertainties.

“On external front, its the concerns about the imminent trade war between the US and China, and the entire Asia region will be affected by it. Internally, investors, be they local or foreign, are still concerned about uncertainties [regarding] public policies, from minimum wage to broadband prices, etcetera, hence the selling activities,” Foo said.

“From the technical point of view, the KLCI, whose downtrend can be traced to a high of 1895 points in April, is still negative in the medium- to long term. However, the market is likely to see a rebound in the near term, due to being oversold. But it (the rebound) will most likely be capped at around 1,700 to 1,730 points,” he added.

Reuters reported Asian stocks fell for the fourth day and major currencies traded in tight ranges on Thursday, with financial markets getting jittery before a US deadline to impose tariffs on Chinese imports just a day away.

Regionally, Japan’s Nikkei fell 0.78%, while Hong Kong Hang Seng Index declined 0.21%. The South Korean Kospi also closed 0.35% lower.

On Bursa Malaysia, 2.17 billion shares, worth some RM1.45 billion, were traded. There were 405 gainers versus 452 losers, with 356 counters remaining unchanged.

The top gainer was Carlsberg Brewery Malaysia Bhd, while the biggest loser was Allianz Malaysia Bhd.

Nova MSC Bhd was the most actively-traded counter, with 106.35 million shares done.