KLCI falls 1.94% as sentiment turns bearish

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KUALA LUMPUR (Aug 24): The FBM KLCI fell 1.94% at mid-morning today as market sentiment turned bearish in line with the slump at most regional markets.

At 10am, the FBM KLCI lost 29.94 points to 1,544.73.

The top losers included Public Bank Bhd, British American Tobacco (M) Bhd, United Plantations Bhd, Aeon Credit Services (M) Bhd, Petronas Gas Bhd, LPI Capital Bhd, Malayan Banking Bhd, Batu Kawan Bhd, Tasek Corporation Bhd and Tasco Bhd.

The top actives included Frontken Corporation Bhd, AirAsia X Bhd, IFCA MSC Bhd, Hubline Bhd, Globaltec Technology Bhd, Nexgram Holdings Bhd and Nova MSC Bhd.

The top gainers included Top Glove Corporation Bhd, Shell Refining Company (Federation of Malaya) Bhd, Harbour-Link Group Bhd and Malaysia Airports Holdings Bhd.

Asian stocks and oil fell on Monday after Wall Street suffered another bruising blow as deepening concerns over the slowing Chinese economy continued to unnerve global equity markets, according to Reuters.

The safe-haven yen rallied and key government bonds were bought from the widespread unrest in the financial markets, set in motion nearly two weeks ago when China devalued its currency and generated fears about the state of its economy, it said.

Hong Leong IB Research said the FBM KLCI is likely to face further selldown this week amid bearish handover from Dow’s 3.1% fall last Friday and compounded by lingering domestic concerns (political woes, 1MDB scandal, ringgit trauma, sliding reserves coupled with renewed worries of Malaysia sovereign ratings amid moderating economic outlook).

“Furthermore, investors are likely to reduce participations ahead of 29–30 Aug Bersih 4.0 rally.

“Key supports are 1,480–1,526 while resistances remain near 1,600–1,628,” it said.