KUALA LUMPUR (Oct 4): The FBM KLCI drifted lower in early trade this morning and looked set to extend its run to stay below the 1,600-point level and remain at four-year low.
At 9.05am, the FBM KLCI dipped 2.06 points to 1,562.06.
The top losers included Kuala Lumpur Kepong Bhd, Petronas Chemicals Group Bhd, British American Tobacco (M) Bhd, RHB Bank Bhd, Sime Darby Bhd, Dayang Enterprise Holdings Bhd, Master-Pack Group Bhd, P.I.E. Industries Bdh and Kerjaya Prospek Group Bhd.
Stocks in Asia looked set to end the week with a reprieve as a wave of poor economic data countered an increase in wagers that the Federal Reserve will cut rates later this month. Treasuries climbed, according to Bloomberg.
Futures edged higher in Japan and Australia, with contracts little changed in Hong Kong. Earlier, the S&P 500 rose the most in a month after climbing back from a drop of more than 1% sparked by the weakest reading on the U.S. services sector in three years. Odds the Fed eases policy further at its next meeting spiked as the data came just after the worst factory numbers in a decade. The yield on 10-year Treasuries dropped for the sixth straight day and the dollar dipped, it said.
CGS-CIMB Retail Research said tracking the sluggish performance across the global stock markets, the FBMKLCI opened with a gap down and fell 10.78 points on Thursday.
It said yesterday’s gap-down move recorded a new 4-year low (a level not seen since Aug 26, 2015) and also triggered a MACD dead cross formation, which is negative for the local bourse.
“Focus is now turning to the US-EU trade fight, which would exacerbate the fears of a global economic recession.
“Moreover, any disappointing data coming from the US or regional front will also put a dent on investor sentiment.
“A strong close below 1,540 would likely confirm that the next leg down to test 1,500 is next. Resistance: 1,572 & 1,580. Support: 1,540 & 1,500,” it said.