FBM KLCI down 16.38pts after shares on Wall Street tumbled overnight

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KUALA LUMPUR (Jan 23): The FBM KLCI fell 16.38 points or 0.96% at midday break today after US share markets at Wall Street and crude oil prices dropped overnight on Tuesday. At 12:30pm today, the KLCI settled at 1,685.74.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com the KLCI's downtrend today is partly because the Dow Jones Industrial Average was down more than 300 points overnight amid softer oil prices.

Wong said: "The market is still waiting for new catalysts and investors will be watching out for the US-China trade talk."

Overnight in US share markets, Reuters reported that the Dow Jones Industrial Average fell 301.87 points or 1.22% to 24,404.48, the S&P 500 lost 37.81 points or 1.42% to 2,632.9 and the Nasdaq Composite dropped 136.87 points or 1.91% to 7,020.36. It was reported that US stocks ended lower on Tuesday, snapping a four-session rally, as a gloomy global economic growth outlook, trade concerns and disappointing company forecasts dampened sentiment.

On crude oil markets, it was reported that Brent oil futures settled down US$1.24 (RM5.13) or 2% at US$61.50 a barrel while US West Texas Intermediate crude futures fell US$1.23 or 1.9% to US$52.57. Oil prices dropped about 2% on Tuesday over concerns the world's stumbling economy could pinch fuel demand as US shale fields surge and cuts by Russia come in below expectations.

At Bursa Malaysia today, Press Metal Aluminium Holdings Bhd was the worst-hit, in percentage terms, among the 30 KLCI stocks. At 12:30pm, Press Metal settled down 30 sen or 6.74% at RM4.15.

KLCI-linked banking stocks Public Bank Bhd and CIMB Group Holdings Bhd also traded lower. Public Bank fell 42 sen or 1.67% to RM24.76 while CIMB dipped eight sen or 1.39% to RM5.69.