KUALA LUMPUR (Jan 23): The FBM KLCI extended its losses this morning, tracking tentative regional markets, as the local bourse was weighed by select index-linked stocks including Press Metal Aluminium Holdings Bhd and Tenaga Nasional Bhd.

At 9.05am, the FBM KLCI  fell 2.40 points to 1,575.58.

The early decliners included Nestle (M) Bhd, Press Metal, QL Resources Bhd, Tenaga Nasional, Sarawak Plantations Bhd, Sarawak Consolidated Industries Bhd, Gamuda Bhd and YNH Property Bhd.

The early gainers included Carlsberg Brewery Malaysia Bhd, Dufu Technology Bhd, Top Glove Corp Bhd, Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Pentamaster Corp Bhd, Supermax Corp Bhd, MBM Resources Bhd, Muda Holdings Bhd and Johore Tin Bhd.

JF Apex Securities Research said US markets ended mixed near record high levels amid quarterly earnings and concerns over the Wuhan virus.

It said that earlier, European stocks declined as the virus killed 17 people in China.

“On the local market, the FBM KLCI tumbled 9.35 points to 1577.98 points.

“Following the negative sentiment due to the Wuhan virus, the FBM KLCI could remain pressured and retest the support of 1570 points,” it said.

Meanwhile, CGS-CIMB Research estimates the 25 basis points (bps) cut in base lending rate (BLR) could lower its 2020 KLCI earnings estimates by 1.5% and cut the research house’s end-2020 KLCI target of 1,636 by 25 points.

In a strategy note Jan 22, the research house said it expects another 25 bp cut this year.

“Timing of the next rate cut is datadependent and may come earlier than our base case assumption of 2H20.

“Potential beneficiaries of the overnight policy rate (OPR) cut include the property, auto, and consumer sectors. The banking sector is a potential loser,” it said.

This morning, Bloomberg reported that Asian stocks looked set to resume declines amid ongoing efforts to control the widening coronavirus outbreak. U.S. equities pared earlier gains to close flat and Treasury yields edged lower.

After a day of respite Wednesday from a sharp sell-off earlier in the week, futures in Japan and Hong Kong pointed lower again Thursday and Australian shares opened down modestly. The Chinese city at the center of the outbreak suspended outbound flights and rail service, as the country ramps up efforts to contain the illness. Thursday is the final day of trading for mainland Chinese equities before the weeklong Lunar New Year holiday. In a volatile session, the S&P 500 Index ended flat as gains in technology shares and positive earnings reports offset concern about the virus, it said.