KLCI dips 0.53% as US fiscal stimulus stalemate drags markets

KLCI dips 0.53% as US fiscal stimulus stalemate drags markets
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KUALA LUMPUR (Oct 14): The main index of Bursa Malaysia fell 0.53% in the mid-morning today as the fiscal stimulus stalemate in the US dragged regional markets.

At 10am, the FBM KLCI had lost 8.04 points to 1,517.16.

Gainers led losers by 350 to 309, while 371 counters traded unchanged. Trading volume was 1.53 billion shares valued at RM1.09 billion.

The top losers included Kuala Lumpur Kepong Bhd (KLK), Carlsberg Brewery Malaysia Bhd, HeiTech Padu Bhd, Malayan Banking Bhd (Maybank), Maxis Bhd, Hong Leong Industries Bhd, Press Metal Aluminium Holdings Bhd, IHH Healthcare Bhd, Ireka Corp Bhd and Inari Amertron Bhd.

The actively traded stocks included Metronic Global Bhd, AT Systematization Bhd, Kanger International Bhd, Careplus Group Bhd, HLT Global Bhd and Advance Synergy Bhd.

The gainers included Malaysian Pacific Industries Bhd, QL Resources Bhd, Scientex Bhd, Rubberex Corp (M) Bhd, Perusahaan Sadur Timah Malaysia (Perstima) Bhd, G3 Global Bhd, Comfort Gloves Bhd and New Hoong Fatt Holdings Bhd.

Bloomberg said Asian stocks followed their US counterparts lower today as the earnings season began and there was no sign of a quick end to the fiscal stimulus stalemate.

Treasuries and the US dollar were steady, it said.

JF Apex Securities Research said US markets dropped overnight after coronavirus stimulus talks stalled and there were issues of vaccine developments.

It said that earlier, European stocks declined as the US corporate results season kicked off, with concerns over Covid-19 and China's export data.

“On the local market, the KLCI rose 6.77 points to 1,525.20.

“Following the negative performance on Wall Street, the KLCI could pull back from its recent gains and hover sideways below the resistance at 1,550 points,” it said.