FBM KLCI slumps amid China-US trade war concerns

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KUALA LUMPUR (May 8): The FBM KLCI opened lower today with Asian shares after crude oil and US equities' overnight drop on Tuesday amid China-US trade war concerns.

At Bursa Malaysia today, the KLCI opened down 3.81 points at 1,635.56 at 9am. At 9:09am, the KLCI fell 10.37 points to 1,629.

"Pending further solid cues from the US-China trade developments, cautious sentiment should prevail, but the weak ringgit should continue to support
strength in export-related counters," TA Securities Holdings Bhd wrote in a note today.
 
Reuters reported that Asian equities tracked Wall Street's slide on Wednesday as the latest developments in the US-China trade conflict fanned fresh fears about global growth, driving support for safe-haven government bonds. It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3%, stooping to its lowest level since late March.

Overnight in the US, it was reported that the Dow Jones Industrial Average closed down 473.39 points or 1.79% to 25,965.09, the S&P 500 lost 48.42 points or 1.65% to 2,884.05 and the Nasdaq Composite dropped 159.53 points or 1.96% to 7,963.76.

In oil markets, it was reported that Brent futures closed down US$1.36 or 1.9% to settle at US$69.88 a barrel while US West Texas Intermediate slipped 85 cents or 1.4% to end at US$61.40.