KLCI dips in line with region, banks weigh

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KUALA LUMPUR (Sept 21): The FBM KLCI fell in early trade today in line with the decline at most global markets, weighed by losses including at index-linked banking stocks.

At 9am, the FBM KLCI lost 7.91 points to 1,661.54.

The top losers included AMMB Holdings Bhd, LPI Capital Bhd, Hong Leong Bank Bhd, DiGi.Com Bhd, Tenaga Nasional Bhd, Top Glove Corporation Bhd, Astro Malaysia Holdings Bhd, Malayan Banking Bhd, Wing Tai Malaysia Bhd, Genting Bhd and Public Bank Bhd.

Asian shares followed Wall Street lower on Monday after the Federal Reserve's decision to keep interest rates at record lows raised fresh concerns about growth globally, particularly in China, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1%, with Australia down 2.3% and South Korea off 1.4%. Japan was closed for a long holiday, it said.

JF Apex Securities Research in a market preview today said US markets declined sharply after the Federal Reserve kept interest rates unchanged.

Similarly, it said European stocks tumbled as the Fed's decision stemmed concern on the global economy. 

“On the local market, the FBM KLCI lost 12.09 points to 1,669.45 points as investors took profit from last week's rally.

“Following the bearish performance in the US, we expect the FBM KLCI to be negative today and could test its support of 1,650 points,” it said.