KLCI to extend consolidation, listing of new REIT to be in focus

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KUALA LUMPUR (Sept 29): The FBM KLCI is expected to extend its consolidation in line with the overnight slump at most global markets, dragged by lingering concerns over China’s economic growth.

The listing of a new real estate investment trust (REIT), the Al-Salam REIT will also be in focus today, coming at a time when market sentiment has taken a beating.

Global equity markets and commodities slumped on Monday, pulled lower by worry over the economic health of China and other big emerging markets in a week filled with key economic data, according to Reuters.

An 8.8% drop in Chinese industrial firms' profits and a plunge of nearly 30% in miner Glencore's London-traded shares sparked the latest round of worry, sending copper back below US$5,000 a tonne, it said.

The FBM KLCI may also find it tough to defend its 1,600-point psychological level for a prolonged period in the near time given the lack of fresh catalysts.

Indeed, the RM20 billion plan announced by the government to inject funds into the local market via Khazanah Nasional Bhd-owned ValueCap Sdn Bhd seems to have had little impact on investors over the past few weeks.