KLCI edges lower in line with region on U.S. manufacturing shock

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KUALA LUMPUR (Oct 2): The FBM KLCI edged lower this morning, tracking regional markets on weak U.S. manufacturing activity.

At 9.05am, the FBM KLCI shed 0.65 points to 1,588.79.

The decliners included MBM Resources Bhd, KESM Industries Bhd, Kossan Rubber Industries Bhd, Pentamaster Corp Bhd, Petronas Chemicals Group Bhd, G3 Global Bhd, Ideal United Bintang International Bhd, RHB Bank Bhd and SP Setia Bhd.

Global shares retreated to one-month lows on Wednesday after U.S. manufacturing activity tumbled to more than a decade-low, sparking worries that the fallout from the U.S.-China trade war is starting to spread to the U.S. economy, according to Reuters.

A slowdown in U.S. economic growth would remove one of the few remaining bright spots in the global economy and come just as Europe is seen as close to falling into recession, it said.

Kenanga IB Research said Asian stocks mostly closed higher following Australia central bank announced to cut cash rate to new record low.

It said back home, the FBMKLCI gained 5.53 points or 0.35% to end at 1,589.44.

“Chart-wise, the index is trading below all the key SMAs coupled with negative MACD indicator.

“Hence, we opine that bearish sentiment remains intact until further signal warrants a trend reversal.

“Key support levels to watch out for are 1,570 (S1) and 1,550 (S2). Conversely, overhead resistance levels can be found at 1,630 (R1) and 1,650 (R2),” it said.