KUALA LUMPUR (Feb 11): Selling seems to have eased today with the FBM KLCI closed almost flat at 1,643.95 points, down 0.46 points, although the regional markets continue to head south amidst the lower overnight close on Wall Street, as a result of global economic concern.
Hong Kong market led the fall in the regional markets today. Hang Seng Index plunges 3.85% to 18,545.80 points on the first trading day of the Lunar Year. The sentiment there was badly hit by the violent street protest in the special administrative region on the second day of Chinese New Year.
There is mounting concerns about the course of US interest rate policy and the health of global financial institutions. Overnight, the US Federal Reserve Chairwoman Janet Yellen spoke about risks to the economic outlook that could delay the central bank’s plans for raising rates.
MSCI's broadest index of Asia-Pacific shares ex-Japan shed 1.4%, and South Korea’s Kospi Index dived 2.9% while Singapore’s Straits Time Index shed 1.7% to 2,538.28 points.
Etiqa Insurance & Takaful head of research Chris Eng said there is a lack of catalysts for the local market, with the index’s performance largely dependent on the direction of global markets.
“The weak ringgit is not helping and the local market was among the worst performers for the past two years. Going forward, the direction of the KLCI will continue to be determined by developments in the global market,” he said.
Going forward, Eng said upside for the KLCI is limited to the 1,700 level, and there is still room for further downside.
Bursa Malaysia saw some 1.21 billion shares, worth RM1.39 billion exchanged, with decliners outpacing gainers at 437 versus 272. 302 counters were unchanged.
Leading the decliners was KESM Industries Bhd, while Dutch Lady Milk Industries Bhd led gainers. Tiger Synergy Bhd was the most actively-traded stock.
Reuters reported fresh cracks appeared in global markets on Thursday, as investors sought the safety of Japanese yen, gold and top-rated bonds, while dumping US dollars on bets the Federal Reserve could be done raising interest rates.