KUALA LUMPUR (April 11): The FBM KLCI closed down 15.23 points or 0.93% at 1,624.23 on foreign selling as US-Europe trade tension and slower global economic growth concerns hit Asian stock markets.
Slower global economic growth concerns followed the cut in the International Monetary Fund's (IMF) world economic growth outlook. At 5pm, the KLCI closed at 1,624.23, led by Tenaga Nasional Bhd's share price slump.
The KLCI pared losses after falling to its intraday low at 1,622.45, the index's lowest since December 2016. Today, the KLCI's current levels compare with the 1,896.03 reached on April 20, 2018.
Today, Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com: “Gloomy global growth expectations weigh on market sentiment after the IMF cut its global growth forecast since the financial crisis.
"The gloomy economic prospect coupled with continued foreign selling has dragged KLCI to its lowest point since December 2016."
Among the 30 KLCI stocks today, Tenaga closed as top decliner in percentage terms after the counter fell 52 sen or 4.13% to RM12.06. Tenaga cut losses after slumping to its intraday low at RM11.80.
Tenaga shares fell after major shareholder Khazanah Nasional Bhd was reported to have offered to sell Tenaga shares under a share placement to raise RM1.05 billion. Bloomberg, citing terms for the deal, reported that the Malaysian Government investment arm Khazanah offered to sell 85 million shares in Tenaga at RM12.33 each, which represents a 2% discount to the stock's last closing price of RM12.58.
Across Asia today, China shares closed lower while Japan and South Korea equities erased intraday losses to finish higher. In China, the Shanghai Stock Exchange Composite closed down 1.6% while Hong Kong's Hang Seng fell 0.93%.
Reuters reported that China shares fell as trade tensions between the United States and the European Union added to worries over the global economic outlook.