KLCI dips in early trade on weakening global outlook

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KUALA LUMPUR (Dec 9): The FBM KLCI kicked off Tuesday on a weaker note in line with the overnight decline at most global markets.

At 9.01am, the FBM KLCI fell 0.37 points to 1,740.47.

The top losers included Lafarge Malaysia Bhd, IJM Landing Holdings Bhd, KLCC Properties Group Bhd, Kossan Rubber Industries Bhd, Aeon Credit Services (M) Bhd, Petronas Dagangan Bhd, IOI Corporation Bhd, Hartalega Holdings Bhd, Petronas Chemicals Group Bhd and SapuraKencana Petroleum Bhd.

At the global markets, U.S. and European stocks fell on Monday after weak Chinese and Japanese data stoked worries about slowing global economic growth, while oil prices sank to five-year lows on expectations of oversupply into 2015, according to Reuters.

The euro sagged to 2-1/2-year lows against the dollar after European Central Bank policymaker Ewald Nowotny warned of a "massive weakening" of the euro zone economy and said the purchase of state bonds could provide a boost. His comments came just days after Standard and Poor's downgraded its credit rating on Italy, the bloc's third-largest economy, to a level just above junk status, it said.

JF Apex Securities Research said U.S. stocks fell sharply overnight with benchmarks retreating from records and the energy sector slammed as the price of crude fell below $63 a barrel for the first time since July 2009.

Similarly, it said European shares closed lower with construction stocks continuing to weigh heavily after Wall Street opened down.

“On the local market, the FBM KLCI fell 8.53 points to 1740.84 points.

“Following the bearish performance in the US and decline in oil price, we expect the KLCI to remain under pressure and could test its immediate support at 1735 points,” it said.