KLCI gets off to muted start in line with lacklustre regional markets, ahead of GDP data to be released later in day

KLCI gets off to muted start in line with lacklustre regional markets, ahead of GDP data to be released later in day
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KUALA LUMPUR (Aug 14): The FBM KLCI got off to a muted start early Friday, in line with regional markets following the lacklustre overnight close at Wall Street, as local investor focus shifted to the second quarter gross domestic product performance to be announced by Bank Negara later in the day.

At 9.05am, the benchmark index shed 3.27 points to 1,573.15.

The early decliners included Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Hartalega Holdings Bhd, Fraser & Neave Holdings Bhd, Supermax Corp Bhd, Inix Technology Bhd, UWC Bhd, Kossan Rubber Industries Bhd and Pharmaniaga Bhd.

Bloomberg said Asian stocks saw a muted start to trading Friday after a lackluster U.S. session as investors mulled the stalemate in stimulus negotiations and parsed signs of an economic recovery.

Treasury yields steadied near an eight-week high, it said.

Rakuten Trade Sdn Bhd in its daily market report said the performance on Wall Street was rather tentative as investors became cautious over the prolonged discussion over the US stimulus package.

It said the Dod Jones Industrial Average lost 80 points to close just below the 27,900 level.

“Investors also sold the US Treasury on as the 10-year yield had gone up to 0.72% from 0.51% early this month.

“For today, we expect the local bourse to possibly maintain its uptrend albeit at a slower pace following yesterday sudden late surge in buying.

“Hence we reckon the FBM KLCI to gyrate within the 1,565-1,585 range today,” it said.