Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 5): The FBM KLCI extended its losses in early trade today, tracking the decline at most regional markets.

At 9.05am, the FBM KLCI fell 4.76 points to 1,785.35.

The early losers included Fraser & Neave Holdings Bhd, Kuala Lumpur Kepong Bhd, Hatalega Holdings Bhd, Top Glove Corp Bhd, Malaysia Airports Holdings Bhd, Hengyuan Refining Company Bhd, Serba Dinamik Holdings Bhd, ViTrox Corp Bhd and Tenaga Nasional Bhd.

Asian stocks rounded out a tough week with further declines after US equities fell to a three-week low amid the surge in bond yields. Treasuries steadied and the dollar was little changed as traders turned their focus to US employment data Friday, according to Bloomberg.

Shares in Japan and Australia declined and futures indicated losses when trading begins in Hong Kong. The Nasdaq 100 Index notched its worst day since June following Bloomberg’s report that China infiltrated American companies with hardware hacks. The 10-year Treasury yield stabilized at 3.19% after hitting the highest since 2011 this week. Crude oil climbed back toward US$75 a barrel, it said.

Hong Leong IB Research in a traders’brief said with the 10-year yield climbing at a fast-moving pace, investors would stay alert and likely to take further profits over the near term.

“Hence, we opine the Dow’s upside will be capped along 27,000 psychological, in view of the overbought situation noticed on the momentum oscillators.

“On the local bourse, we believe further selling pressure would be seen, tracking the negative performance on Wall Street. Moreover, investors may stay side-lines until further clarity is being addressed in the upcoming 11MP midterm review and Budget 2019.

“In view of the weakness in sentiment, we expect the FBM KLCI to stay tepid at least for the near term,” it said.

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