KLCI drifts lower in line with region, set to remain below 1,700-level

-A +A

KUALA LUMPUR (Oct 30): The FBM KLCI drifted lower in early trade this morning and looked set to extend its run below the crucial 1,700-point level, tracking regional markets.

At 9.05am, the FBM KLCI shed 0.56 points to 1,683.17.

The early losers included QL Resources Bhd, Dufu Technology Bhd, Bursa Malaysia Bhd, Maxis Bhd, ViTrox Corp Bhd, IHH Healthcare Bhd, SAM Engineering & Equipment Bhd, Public Bank Bhd, Pentamaster Corp Bhd and Scicom (MSC) Bhd.

Asian stocks drifted lower at the open after U.S. equities fell on a report the Trump administration was considering extending tariffs to all Chinese imports. The dollar and Treasuries were steady, according to Bloomberg.

Equity benchmarks in Japan, Australia and South Korea were modestly weaker, while futures in China and Hong Kong were little changed as S&P 500 Index contracts nudged lower. The S&P 500 pared a drop in the final minutes of trading. The Dow Jones Industrial Average slid more than 500 points at its worst point, dipping into a correction, while the Nasdaq 100 Index tumbled to the lowest level since May. The S&P 500 and Nasdaq indexes are on track for the steepest monthly declines of the record-long bull market, it said.

Hong Leong IB Research in a traders’ brief said with the sentiment staying soft on the back of potential slowdown in corporate earnings and the rising concerns over global outlook amid the prolonged trade war situation, we may anticipate further selling pressure on Wall Street.

“Meanwhile, investors will be focusing on the corporate results from Facebook and Apple later this week.

“On the local bourse, we believe the trading activities will remain subdued ahead of the widely anticipated Budget 2019 on this Friday to understand a clearer picture on Malaysia’s future growth outlook.

“Hence, the KLCI could be ranging between the 1,673-1,700 levels. Meanwhile, with the softer outlook guidance on tech companies in the US, we expect selling pressure to be seen on technology stocks in Malaysia,” it said.