Thursday 25 Apr 2024
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KUALA LUMPUR (Oct 4): The FBM KLCI ended down 6.45 points or 0.41% after Malaysia reported weaker export and import numbers and as foreign investors became net sellers in the Malaysian stock market.

The KLCI fell after Asian shares tracked US stock futures losses ahead of the crucial US job report on Friday. The US job report is closely watched for clues on whether the Federal Reserve will further reduce interest rates.

At Bursa Malaysia, the KLCI closed down at 1,557.67 points at 5pm after share prices of components including Kuala Lumpur Kepong Bhd (KLK) and Petronas Chemicals Group Bhd fell.

Bloomberg, quoting official Malaysian external data released Friday, reported that the nation's imports fell by the most since 2009 in August as demand for capital goods waned, suggesting the nation’s economic growth will cool in the months ahead.

It was reported that imports slid 12.5% in August from a year ago, trailing the 8% drop forecast by economists in a Bloomberg survey. Exports shrank 0.8%, missing analysts’ estimates for a 2.7% gain, Bloomberg said.

Today, MIDF Amanah Investment Bank Bhd wrote in a note that "continuous decline in imports of capital and intermediate goods indicate weak prospects for future exports".

KLK was the top-percentage decliner among the 30 KLCI stocks. KLK's share price closed down RM1.54 or 6.76% at RM21.24. Petronas Chemicals fell 16 sen or 2.14% to RM7.31.

On the broader market, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that foreign investors have "returned as net sellers" in the Malaysian stock market.

Across global share markets, Hong Kong's Hang Seng closed down 1.11% while South Korea’s Kospi fell 0.55% in an apparent response to a sharp drop in US stock futures.

The Dow Jones mini futures fell 86 points or 0.33% to 26,094 at 5:52pm ahead of the crucial US job report on Friday.

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