KUALA LUMPUR (Aug 9): The FBM KLCI today closed 0.97 point or 0.06% lower after an 11th-hour plunge while volume across Bursa Malaysia slipped below two billion shares.

Analysts attributed the KLCI's 11th-hour plunge to selling pressure in selected KLCI-linked banking stocks. Globally, lingering US-China trade war concerns involving Huawei Technologies also affected market sentiment, they said.

At Bursa Malaysia, the KLCI closed down at 1,615.05 after rising to its intraday high at 1,620.76.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI erased intraday gains, dragged down by the 11th-hour selling in selected banking heavyweights including Hong Leong Financial Group Bhd (HLFG).

“The weakness in the KLCI today was also due to weaker sentiment as a result of external factors after the White House held off licensing decisions for US companies to continue business with Huawei Technologies,” said Leong.

In Malaysia, Leong noted that “investors also locked in recent gains ahead of the extended weekend break”.  Bursa Malaysia said in a statement it will be closed on Monday (Aug 12) in lieu of Hari Raya Aidiladha which falls on Sunday (Aug 11).

"Bursa Malaysia and its subsidiaries will resume operations on Tuesday, 13 August 2019," the bourse operator and regulator said.

Banking heavyweights fell today. Within the KLCI's 30 components, HLFG was the biggest-percentage decliner, after the stock closed 26 sen or 1.48% lower at RM17.30. Hong Leong Bank Bhd and AMMB Holdings Bhd were also among decliners.

Across Bursa Malaysia today, the exchange saw 1.97 billion shares worth RM1.55 billion traded. Yesterday, the bourse registered a volume of 2.12 billion shares worth RM1.52 billion.

Globally, Reuters reported that Asian shares inched up on Friday, helped by Wall Street's rally, but fresh concerns about Sino-US trade ties capped gains in the region.

It was reported that weighing on risk appetite was a report from Bloomberg that Washington is delaying a decision about licences for US firms to restart trade with Huawei. That sent US stock futures down as much as 0.6% in Asian trade, according to Reuters.