KLCI dips 0.27% as banks, Tenaga drag

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KUALA LUMPUR (Nov 14): The FBM KLCI extended its decline this morning and dipped 0.27%, dragged by losses at index-linked banking stocks and utility giant Tenaga Nasional.

At 9.05am, the FBM KLCI fell 4.56 points to 1,683.01.

The early losers included British American Tibacco (M) Bhd, UMW Holdings Bhd, Hong Leong Bank Bhd, Public Bank Bhd, Lafarge Malaysia Bhd, Tenaga Nasional Bhd, Malaysia Airports Holdings Bhd, Time Dotcom Bhd and Felda Global Ventures Holdings Bhd.

Asian stocks headed for a mixed start ahead of key data on China’s economy, following a topsy-turvy session for U.S. equities that saw tech shares rally and energy shares slide. Oil’s unprecedented slump deepened, according to Bloomberg.

Futures pointed to a dip in Japanese stocks, while shares in Hong Kong were indicated higher. Australia shares opened flat. The S&P 500 Index finished Tuesday lower as a surge in optimism over trade talks with China was offset by the plunging crude price, with U.S. oil sliding more than 7 percent. Treasuries climbed and the dollar fell from an 18-month high. The pound extended gains amid optimism the U.K. and the European Union have agreed on a draft Brexit divorce deal, it said.

Hong Leong IB Research in a traders’ brief said on Wall Street, it expects the volatility to remain over the near term as investors will be monitoring the outcome in the upcoming G20 summit as President Trump and President Xi will be meeting up to discuss about trade.

“Besides, weaker crude oil prices may drag energy shares and sentiment on Wall Street.

“We believe the falling Brent crude oil prices would affect trading sentiment on the local front, especially the O&G sector.

“Meanwhile, traders will be more focused on export-driven companies on the back of the weakening bias of ringgit against the USD. On the KLCI, the downside risk will be pegged around 1,658-1,673,” it said.