KUALA LUMPUR (Sept 30): The FBM KLCI fell 17.1 points or 1% to close at 1,652.55 today, following the slide in U.S. stocks, compounded by the Deutsche Bank crisis.
Deutsche Bank’s shares hit new lows on speculation a group of hedge funds have withdrawn excess cash and positions from the institution.
“The (FBM KLCI) has been trading negatively, in tandem with the movement of the U.S. stock market overnight and the weaker indices posted by key markets, due to the slide in Deutsche Bank’s shares and soft Japanese economic data,” said Malacca Securities Sdn Bhd’s senior analyst Kenneth Leong.
The local indices could continue to experience “selling pressures” for the time being, Leong told theedgemarket.com over telephone.
“The Malaysian stock market has dropped below the key support level of 1,660 points. FBM KLCI is expected to remain gloomy for now, mainly due to the lack of local market catalysts, volatility of global oil prices and market sentiment,” he added.
In view of today’s trading sentiment, one key industry to pay close attention to, would be the rubber gloves sector, as shares have been trading positively, following the strengthening of the U.S. Dollar, added Leong.
Elsewhere in the region, Japan’s Nikkei 225 dropped 1.46%, Shanghai Stock Exchange Composite Index rose 0.21%, Shenzhen Stock Exchange improved 0.49% and South Korea’s Composite Stock Price Index declined 1.21%.
Reuters reported Asian stocks continued to make losses today, due to concerns over the Deutsche Bank crisis and as oil prices inched back from near-one month highs, on scepticism over OPEC's new plan to place a cap on output.