Global concerns drag KLCI down 0.4%

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KUALA LUMPUR (Dec 5): The FBM KLCI joined other Asian stock indices in tracking losses on Wall Street yesterday amid plunging US Treasury yields and continued uncertainties over the US-China trade dispute.

The benchmark index closed down 6.72 points or 0.4% at 1,688.27. It was mostly dragged by telco stocks, namely Maxis Bhd, Axiata Group Bhd and Bhd.

“The decline was mostly influenced by external factors today,” said Vincent Khoo, head of research at UOB Kay Hian.

Across Bursa Malaysia, 519 declining counters outpaced the 251 stocks that recorded gains.

The most actively traded stocks were Bumi Armada Bhd, Techbond Group Bhd and Hibiscus Petroleum Bhd.

Volume was weak, however, with a total of 1.75 billion shares traded with a total value of  RM1.52 billion.

Across Asia, stocks followed their American counterparts, which were down as the spread between two- and 10-year Treasury yields were at their flattest level in over a decade, according to Reuters.

Trade tensions have also re-emerged as negotiations begin between the US and China to reach an agreement.

“MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.5%. The Shanghai Composite Index slipped 0.6% and Japan's Nikkei dropped 0.5%,” Reuters reported.