KLCI falls 0.81%, tracks regional loss to stay below 1,700-level

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KUALA LUMPUR (Oct 25): The FBM KLCI fell 0.81% in early trade this morning, tracking losses at regional markets and remaining firmly below the 1,700-point psychological level.

At 9.05am, the FBM KLCI lost 13.65 points to 1,676.39.

The losers included Fraser & Neave Holdings Bhd, Malaysian Pacific Industries Bhd, Dutch Lady Milk Industries Bhd, Public Bank Bhd, Mi Equipment Holdings Bhd, Elsoft Research Bhd, Heineken Malaysia Bhd, Pentamaster Corp Bhd, ViTrox Corp Bhd and Aeon Credit Service (M) Bhd

Asian shares dived on Thursday as hundreds of billions of dollars haemorrhaged from global markets after a rout in tech stocks inflicted the largest daily decline on Wall Street since 2011, wiping out all its gains for the year, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.7 percent. Japan's Nikkei slumped more than 3 percent to hit a six-month trough and Australian shares skidded about 2 percent to a more than one-year low, it said.

Hong Leong IB Research in a traders’ brief said despite the stronger-than-expected 3Q results, investors continue to reduce exposure on technology shares amid extended concerns over future global outlook due to the unsettled trade war as well as the rising interest rate outlook.

“We believe these factors will continue to cloud market sentiment over the near term. Should the Dow violates below the 24,500 level, it will trigger further selling pressure towards 24,000.

“On the local front, investors remained on the sidelines and will be cautious amid the negative global market performances.

“With little positive fresh catalysts to lift the stock market and we opine that the KLCI will stay weak below the 1,700 moving forward, at least until Budget 2019,” it said.