Friday 29 Mar 2024
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KUALA LUMPUR (March 7): The FBM KLCI remained in the red after the midday break, as trade war fears re-emerged following White House economic adviser Gary Cohn's resignation.

At 3pm, the benchmark index was down 0.63% or 11.82 points at 1,836.55, breaking the key 1,840 support level. Market breadth was negative as 807 decliners outnumbered 90 gainers.

Reuters said global stocks and the US dollar slumped today after Cohn — a strong advocate of free trade — resigned, fanning fears that US President Donald Trump will proceed with protectionist tariffs and risk a trade war.

The announcement of Cohn's resignation spooked markets, offsetting the rebound seen in global equities yesterday.

Kenanga Investment Bank Bhd said the 1,840 mark is a key support level, breaking which will see the KLCI trailing lower towards the 1,798 level, adding that there is a downside bias for the index in the near term amid a lack of reversal signals.

"Expect the local index to resume its consolidation mode this week within 1,840 and 1,883. The 1,840 is a crucial support level to watch out, where a break below would trigger capitulation, seeing the index on a lower note towards the 1,798 support level," the research house said in a note.

Among the top decliners were component stocks Petronas Dagangan Bhd, Nestle (M) Bhd, and Press Metal Aluminium Holdings Bhd. The top gainers were led by Carlsberg Brewery Malaysia Bhd, British American Tobacco (M) Bhd and Pintaras Jaya Bhd.

The most actively traded stock was Sapura Energy Bhd, with some 62.89 million shares exchanged.

Asian stocks were largely down, with Japan's Nikkei 225 and South Korea's Kospi declining 0.77% and 0.4% respectively. Hong Kong's Hang Seng fell 1.18%.

 

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