KLCI down 0.66% as investor sentiment remains jittery

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KUALA LUMPUR (June 22): The FBM KLCI fell 0.66% at mid-morning today, tracking losses at the regional markets as investor sentiment remained jittery given the spectre of a global trade war.

At 10am, the FBM KLCI fell 11.02 points to 1,681.3.

Losers led gainers by 277 to 177, while 283 counters traded unchanged. Volume was 398.65 million shares valued at RM282.86 million.

The top losers included British American Tobacco (M) Bhd, Kuala Lumpur Kepong Bhd, Nestle (M) Bhd, Ayer Holdings Bhd, KESM Industries Bhd, Superlon Holdings Bhd, PPB Group Bhd, Tenaga Nasional Bhd and Carlsberg Brewery Malaysia Bhd.

The actives included Sapura Energy Bhd, My E.G. Services Bhd, Telekom Malaysia Bhd, Berjaya Corp Bhd, Nova MSC Bhd and Kretam Holdings Bhd.

The gainers included United Plantations Bhd, Fraser & Neave Holdings Bhd, Mega First Corp Bhd, Chemical Company of Malaysia Bhd, Apex Healthcare Bhd, Telekom Malaysia Bhd and RHB Bank Bhd.

Asian shares were under pressure on Friday on signs US trade battles with China and many other countries are starting to chip away at corporate profits, with oil prices choppy ahead of major producers meeting to discuss raising output, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed in early trade, stuck barely above its six-month low hit on Tuesday. Japan's Nikkei lost 1%, it said.

Hong Leong IB Research in a traders' brief said the market sentiment will still be affected by the ongoing trade war tensions and stocks overall could take further beating should there be new announcements by the Trump administration over the near term.

"Meanwhile, some major economic data that traders could focus are the Manufacturing Purchasing Managers' Index (PMI) and Services PMI that will be released later today," it added.

On the outlook for the FBM KLCI, it said as the market prices in the trade tensions development, the local bourse would be affected and may trade lower over the near term.

"Internally, investors will need to get more clarity on policies crafted by the Pakatan Harapan-led government.

"Should there be any negative surprises, we may see extended retracement phase on KLCI. Hence, upside likely to be capped over the near term," it said.