FBM KLCI down after starting higher

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KUALA LUMPUR (May 21): The FBM KLCI opened up before erasing gains after US shares closed down overnight. World equities fell amid concerns that the US' restrictions on Huawei Technologies Co Ltd will worsen current China-US trade war sentiment. 

At 9am, the KLCI opened up 3.38 points at 1,608.74. At 9:05am, the KLCI fell 1.1 points to 1,604.26. 

"Despite technical momentum indicators hooking up suggesting further upside bias for the local blue-chip benchmark index following last week's rebound from
a steep sell-off to a near four-year low, trend indicators still signal downtrend continuation due to the weak upside momentum," TA Securities Holdings Bhd wrote in a note today.

"Meanwhile, external sentiment remains jittery given the unpredictable US-China trade war situation which continues to escalate with tit-for-tat tariffs and other trade restrictions unlikely to end with no signs of near-term resolution, hence expect market volatility to persist in this short three-day trading week due to two religious festival holidays," TA said.

Across Bursa Malaysia, top decliners included semicoductor-related stocks Malaysian Pacific Industries Bhd (MPI) and Inari Amertron Bhd as investors evaluated the impact of the US' Huawei's restrictions on the global electronic component sector.

Malaysian shares resumed trading today after markets here were closed on Monday (May 20) in lieu of Wesak Day, which fell on Sunday (May 19). On Tuesday (May 22), markets here will be closed for the Nuzul Al'Quran holiday.