Friday 29 Mar 2024
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KUALA LUMPUR (Dec 20): The FBM KLCI fell 1.31% in early trade this morning, tracking the losses at regional markets.

At 9.05am, the FBM KLCI lost 21.39 points to 1,634.27.

The early decliners included Nestle (M) Bhd, British American Tobacco (M) Bhd, Fraser & Neave Holdings Bhd, Carlsberg Brewery Malaysia Bhd, Petronas Dagangan Bhd, Petronas Gas Bhd, Genting Plantations Bhd, Hong Leong Bank Bhd, Public Bank Bhd and IHH Healthcare Bhd.

Asian shares retreated on Thursday after the U.S. Federal Reserve raised rates, as expected, and kept most of its guidance for additional hikes next year, dashing investor hopes for a more dovish policy outlook, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.34 percent, with Australian shares dropping as much as 0.65 percent to two-year lows, it said.

Hong Leong IB Research in a traders’ brief said in the US, recent market skittishness was largely attributed to concerns over sluggish global economic expansion, escalating US-China trade tensions and growing worries that the Fed's plan to raise interest rates despite escalating headwinds.

“Overall, Wall Street is expected to experience extended bouts of volatility as the Fed delivered a less dovish outlook overnight. Key resistances are 24000-24300 while supports are near 22800-23000.

“On the local front, sentiment is likely to remain edgy as the domestic and external headwinds should prevail.

“Rising US-China trade turmoil and a slowing global economy, coupled with subdued commodity prices that exacerbate Malaysia’s persistent weak fiscal profile and the weakening corporate earnings are main drags.

“Major supports are set at 1600-1626 whilst resistances are near 1665-1678,” it said.

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