Friday 29 Mar 2024
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KUALA LUMPUR (Oct 23): The FBM KLCI extended its losses in early trade this morning, in line with the retreat at most regional markets.

At 9.05am, the FBM KLCI fell 3.96 points to 1,718.51.

The early losers included Fraser & Neave Holdings Bhd, Malaysian Pacific Industries Bhd, Hong Leong Bank Bhd, CIMB Group Holdings Bhd, Malayan Banking Bhd, Tenaga Nasional Bhd, Hektar REIT, MGB Bhd and Dialog Group Bhd.

Asian shares edged lower on Tuesday as earnings season nerves in the U.S. dented Wall Street, while a cocktail of negative factors from Saudi Arabia's diplomatic isolation to concerns over Italy's budget and Brexit talks depressed sentiment, according to Reuters.

That rolled back some of the previous session's strong rally led by China stimulus hopes, with the MSCI's broadest index of Asia-Pacific shares outside Japan dropping 0.4 percent. Japan's Nikkei fell 1.25 percent, it said.

Hong Leong IB Research in a traders’ brief said it expects the upcoming midterm elections, the unsettled US-China trade disputes as well as the rising interest rate outlook could dampen the stock markets moving forward.

“However, the stronger-than-expected corporate earnings will be able to cushion the downside risk over the near term.

“On the local bourse, stocks may stay soft prior to the “belt-tightening mode” Budget 2019, as Finance Minister mentioned less “goodies” to be given out, while market participants are anticipating new tax policies to be implemented.

“Hence, the FBM KLCI is likely to trade sideways over the near term,” it said.

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