FBM KLCI slips amid gloomy global growth outlook

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KUALA LUMPUR (Jan 22): The FBM KLCI settled down 1.91 points or 0.11% with Asian shares and US stock futures as pessimism about world economic growth drove investors away from risky assets.

At 12:30pm, the KLCI settled at 1,690.31 after rising to its highest so far today at 1,700.56. The KLCI rose earlier amid positive technical indicators and hopes of ebbing China-US trade war concerns. Malaysian shares resumed trading today after markets were closed yesterday for the Thaipusam holiday.

Today, Hong Leong Investment Bank Bhd head of retail research Loui Low Ley Yee wrote in a note: "We believe the market sentiment may stay positive over the near (term) following fresh developments from the trade front as China proposed to reduce trade deficit over the next couple of years. Also, technical indicators on FBM KLCI have suggested further upside might be seen around 1,700."

Globally, Reuters reported that Asian shares and US stock futures slipped on Tuesday as pessimism about world growth drove investors away from risky assets, while sterling dithered as the latest plan for Brexit appeared to come and go with no progress.

It was reported that US markets were closed on Monday for a holiday so trading was generally subdued overnight. However, equity prices in Europe and Latin America were hit after data showed a slowdown in growth in China, the world's second biggest economy. It was reported that the International Monetary Fund trimmed its global growth forecasts and a survey showed increasing pessimism among business chiefs as trade tensions loomed.