KLCI falls 0.75% to below 1,640 level

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KUALA LUMPUR (May 4): The FBM KLCI lost 0.75% at mid-morning today to below 1,640 points in tandem with the fall at mosr regional markets.

At 10.02am, the FBM KLCI lost 12.33 points to 1,639.11.

Asian shares slipped on Wednesday as worries about global growth and creeping deflation resurfaced, undermining commodities and boosting demand for safe-haven sovereign debt, according to Reuters.

Disappointing manufacturing surveys from China and the UK combined with downgrades to growth and inflation forecasts from the European Commission to sour the mood, it said.

Hong Leong IB Research said that today, it expects the trend of the FBM KLCI to remain weak in tandem with overnight depreciation in US stocks, oil prices as well as Ringgit against US dollar.

It said traders are expected to continue stay cautious over the release of a few key external economic data, including US, China as well as another interest payment of US$52.4 million (circa RM205 million) due on 11 May on a separate 1MDB bond (also guaranteed by IPIC).

“As we are entering into month of May, market may also stay cautious over the old adage “Sell in May and Go Away”.

“Coupled with technical downtrend position, local benchmark index is likely to trend cautiously towards our revised weekly projected trading range of between 1639 and 1675 territories,” it said.