KLCI gets off to muted start, tracking regional declines

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KUALA LUMPUR (March 8): The FBM KLCI got off to  muted start this morning, tarcking declines at regional markets.

At 9.05am, the FBM KLCI shed 0.94 points to 1,686.01.

The decliners included Petronas Dagangan Bhd, Malaysia Airports Holdings Bhd, UMW Holdings Bhd, BIMB Holdings Bhd, Ireka Corp Bhd and Sime Darby Plantation Bhd.

Stocks in Asia tracked declines in the U.S. after a European Central Bank cut to economic forecasts reignited concern on global growth and sent global bond yields lower. The euro fell to the lowest since 2017, according to Bloomberg.

Shares in Sydney and Tokyo retreated after the S&P 500 Index sank for a fourth day, with Amazon, Microsoft, Apple and Facebook the biggest drags. The gauge closed just below its closely watched 200-day moving average that has provided support in the past. Australian bonds tracked gains in Treasuries and bunds, while the dollar steadied after gaining for a seventh day, it said.

Kenanga IB Research said Asian stocks market ended mostly lower with investors taking a more cautious approach while waiting for the outcome of the trade negotiation.

It said locally, the FBM KLCI gained marginally by 0.13pts or 0.01% to close at 1,686.95.

“Overall, the technical outlook appears lacklustre at the moment as key momentum indicators are bearish.

“The index is likely to trend lower to its support level at 1,670 (S1) and even 1,630 (S2). Should the trade war end, the index may test its immediate resistance at 1,730 (R1) and even 1,780 (R2),” it said.