KLCI falls 0.7% as political uncertainties loom, regional markets struggle

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KUALA LUMPUR (Sept 23): The FBM KLCI fell 0.7% at the midday break Wednesday as Datuk Seri Anwar Ibrahim claimed to have "formidable" and "convincing" support from MPs to form a new "strong" government, against the backdrop of struggling regional markets.

At 12.30pm, the FBM KLCI lost 10.53 points to 1,495.25.

Market breadth turned negative with 676 losers and 99 gainers, while 597 counters traded unchanged. Trading volume was 5.25 billion shares valued at RM2.56 billion.

The losers included Carlsberg Brewery Malaysia Bhd, Aeon Credit Service (M) Bhd, Dutch Lady Milk Industries Bhd, KESM Industries Bhd, Hong Leong Financial Group Bhd, Petronas Dagangan Bhd, Pharmaniaga Bhd, Public Bank Bhd and UWC Bhd.

The actively traded stocks included Advance Synergy Bhd, Kanger International Bhd, Pasukhas Group Bhd, Vsolar Group Bhd, XOX Bhd, Iris Corp Bhd, Bintai Kinden Corp Bhd, Pegasus Heights Bhd, Ikhmas Jaya Group Bhd and Fintec Global Bhd.

The gainers included Nestle (M) Bhd, Hartalega Holdings Bhd, Far East Holdings Bhd, Westports Holdings Bhd, Ajinomoto (M) Bhd, Scientex Bhd, Time dotCom Bhd, Teck Guan Perdana Bhd and QL Resources Bhd.

Reuters said Asia's stock markets struggled to emulate Wall Street's rebound on Wednesday as persistent worries about the global economic recovery kept investors cautious, while ebbing inflation expectations helped the US dollar to a two-month high.

MSCI's broadest index of Asia-Pacific shares outside Japan was steady after two days of declines, but the mood was hardly bullish, it said.

Rakuten Trade Sdn Bhd said Wall Street staged a technical rebound yesterday as buyers emerged in droves amidst the Federal Reserve's call to support the US economy indefinitely.

It said the Dow Jones Industrial Average gained 140 points to close at almost the 27,300 level while the Nasdaq inched closer to the 11,000 threshold.

“In view of this, we reckon regional markets to trend higher today after days of decline.

“Locally, we expect the FBM KLCI to maintain its upward momentum having performed solidly yesterday.

“Hence, we believe the benchmark index to test the 1,510 mark today after which the 1,520 would be the immediate resistance level,” it said.