KLCI drops 0.49% in line with regional retreat

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KUALA LUMPUR (March 5): The FBM KLCI fell 0.49% in early trade this morning, tracking the drop at regional markets.

At 9.05am, the FBM KLCI fell 8.41 points to 1,685.58.

The early decliners included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Petronas Dagangan Bhd, Hong Leong Financial Group Bhd, Kuala Lumpur Kepong Bhd, PPB Group Bhd, Genting Plantations Bhd, Petronas Gas Bhd, Tenaga Nasional Bhd and British American Tobacco (M) Bhd.

Asian shares stepped back on Tuesday after China cut its economic growth target and pledged measures to support the economy amid growing challenges from rising debt and a dispute over trade and technology with the United States, according to Reuters.

Australian shares dropped 0.6 percent while South Korea's Kospi lost 0.5 percent. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 percent and Japan's Nikkei dropped 0.3 percent, it said.

Kenanga IB Research said Asian stock markets were mostly higher on Monday after both US and China appears to be close to reaching an agreement to stop the trade war.

It said bucking the trend, the FBM KLCI slipped 6.77 points or 0.40% to close at 1,693.99.

“Overall technical outlook appears lacklustre as key momentum indicators are bearish.

“The index is likely to trend lower to its support level at 1,670 (S1) and even 1,630 (S2).Should the trade war end, the index may test its immediate resistance at 1,730 (R1) and even 1,780 (R2),” it said.