KLCI dips 0.35% on global growth worries, FGV in focus ahead of tabling of Felda White Paper

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KUALA LUMPUR (April 10): The FBM KLCI fell 0.35% at mid-morning today as concerns of a global economic slowdown re-emerged and dragged regional markets.

Meanwhile, shares of FGV Holdings Bhd shot up 4.76% in active trade this morning as the White Paper on the Federal Land Development Authority (Felda) is expected to be tabled in the Dewan Rakyat later today.

At 10am, the stock rose six sen to RM1.32, with 35.16 million shares exchanging hands.

The FBM KLCI fell 5.68 points to 1,636.26.

Losers led gainers by 309 to 205, while 298 counters traded unchanged. Volume was 732.75 million shares valued at RM349.53 million.

The top losers included Petronas Chemicals Group Bhd, Malaysia Airports Holdings Bhd, Petronas Gas Bhd, Nestle (M) Bhd, Rapid Synergy Bhd, British American Tobacco (M) Bhd and Genting Bhd.

The actives included FGV, Sapura Energy Bhd, Karex Bhd, Iskandar Waterfront City Bhd, KNM Group Bhd, Priceworth International Bhd and KUB Malaysia Bhd.

The gainers included Oriental Holdings Bhd, Kuala Lumpur Kepong Bhd, Can-One Bhd, Time dotCom Bhd, Mulpha International Bhd, Dutch Lady Milk Industries Bhd, Enra Group Bhd and Pentamaster Corp Bhd.

Asian shares stepped back from eight-month highs on Wednesday as the International Monetary Fund lowered its global growth outlook and as tensions over tariffs between the United States and Europe escalated, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.1%, a day after it hit eight-month highs while Japan's Nikkei lost 0.9%. On Wall Street, the S&P 500 gave up 0.61% and the Nasdaq Composite declined 0.56%, it said.

Hong Leong IB Research said market participants could be staying cautious ahead of the corporate earnings season, while fresh concerns over the US-EU trade tensions as well as the latest IMF downgrade of global economic growth could further dampen the sentiment on stock markets, capping the upside move after a decent rebound in the previous weeks on the back of fading worries on US-China trade disputes.

"The Dow's resistance will be set along 26,500-26,951.

"The FBM KLCI could continue on a consolidation mode over the near term without any fresh leads on the heavyweights.

"However, the sentiment on the small caps and lower liners may still persist within construction and O&G (oil and gas) stocks on the back of potential revival of ECRL and firmer recovery in crude oil prices. The key index could rangebound between 1,635-1,648 zones," the research house said.