KUALA LUMPUR (Dec 10): The FBM KLCI closed down 17.23 points or 1.03% at 1,663.31 as world economic growth and US-China trade spat concerns weighed on global stock markets. The drop in Malaysian plantation shares also dragged the KLCI lower.
Reuters reported that global stocks extended their slump on Monday, with US equity futures and Asian shares sliding on worries over slowing growth and fears that a fresh flare-up in tensions between Washington and Beijing could quash chances of a trade deal. It was reported thar traders returned from the weekend to face a growing wall of worry, with the world's largest economies — the United States, China and Japan — all reporting weaker-than-expected data which pointed to moderating activity.
In Malaysia, Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com that the "local bourse continued to face headwinds from the external front".
Pong said that external factors including the US-China trade spat together with the drop in Malaysian plantation shares dragged the KLCI into the red today.
Earlier today, theedgemarkets.com reported that KLCI-linked plantation counters like Sime Darby Plantation Bhd and IOI Corp Bhd fell after the Malaysian Palm Oil Board said today the country's total palm oil stockpile rose 10.45% to 3.007 million tonnes in November 2018 from the preceding month's 2.72 million tonnes.
It was reported that a higher palm oil stockpile does not bode well for crude palm oil prices. At 5pm, Sime Darby Plantation shares closed 21 sen lower at RM4.48 while IOI Corp fell eight sen to RM4.27.