FBM KLCI starts lower before rising amid US-China trade concerns

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KUALA LUMPUR (Sept 6): The FBM KLCI opened lower before rising on bargain hunting amid concerns on US-China trade war escalation and contagion from weak currencies in emerging markets.

At Bursa Malaysia, the KLCI opened 0.32 point lower at 1,795.82 at 9am. At 9:25am, the KLCI rose 1.26 points to 1,796.76 on bargain hunting after the index slipped 17.26 points yesterday.

Today, TA Securities Holdings Bhd wrote in a note : "The local market should remain weak amid fears over escalation on global trade conflict and contagion from weak currencies in emerging markets."

Reuters reported that global equities remained under pressure with stocks in Asia down for the sixth straight day on Thursday amid fragile investor confidence in the wake of turmoil in emerging markets and anxiety about a major escalation in the US-China trade conflict.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.26 percent to hit its lowest since mid-August. Japan's Nikkei slipped 0.58 percent while Australian shares fell 0.95 percent. Investors were focused on the Sino-US trade war with a public consultation period in the US ending Thursday on additional US$200 billion of US tariffs on Chinese goods.