KUALA LUMPUR (April 10): The FBM KLCI closed down 2.48 points or 0.15% today at 1,639.46 after an overnight decline in US shares amid US-Europe trade tension and after the International Monetary Fund (IMF) cut its world economic growth outlook.
At 5pm, the KLCI ended lower as index-linked Malaysia Airports Holdings Bhd and Petronas Chemicals Group Bhd shares closed among Bursa Malaysia top decliners. The KLCI had earlier slipped to its intraday low at 1,635.89.
Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com: “The drop in the KLCI today is basically tracking the US stocks’ overnight weakness as well as regional (Asian) markets.”
On Tuesday in the US, the Dow Jones Industrial Average dropped 0.72%, the S&P 500 fell 0.61% while the Nasdaq Composite declined 0.56%.
Reuters reported that trade-sensitive industrials dragged Wall Street lower on Tuesday as tensions over tariffs between the US and its European trading partners went from simmer to boil and the IMF lowered its global growth outlook. It was reported that the IMF cut its forecast for world economic growth this year to 3.3 percent from 3.5 percent previously, citing the US-China trade war and a potentially disorderly British exit from the European Union. It was reported that the IMF warned chances of further cuts were high.
Across Bursa Malaysia today, 3.34 billion shares worth RM2.36 billion were traded. Despite the KLCI closing lower, Bursa gainers led decliners at 412 to 341 as investors bought small market capitalisation (small-cap) stocks.
Bursa's small-cap index closed up 183.11 points or 1.38% at 13,479.53.