KLCI loses 0.32% to hover below 1,600 as sentiment stays tepid

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KUALA LUMPUR (Sept 19): The FBM KLCI lost 0.32% at mid-morning to hover below the 1,600-point level as local sentiment stayed tepid.

At 10am, the FBM KLCI fell 5.17 points to 1,594.32.

Losers led gainers by 252 to 203, while 291 counters traded unchanged. Volume was 581.65 million shares valued at RM235.34 million.

The losers included Nestle (M) Bhd, British American Tobacco (M) Bhd, Malaysian Pacific Industries Bhd, Kuala Lumpur Kepong Bhd, Hong Leong Industries Bhd, PPB Group Bhd and Hap Seng Consolidated Bhd.

The actives included MNC Wireless Bhd, Bumi Armada Bhd, KNM Group Bhd, Sapura Energy Bhd and Vsolar Group Bhd.

The gainers included Fraser & Neave Holdings Bhd, Magni-Tech Industries Bhd, Heineken Malaysia Bhd, Dufu Technology Corp Bhd, Amway (M) Holdings Bhd, Greatech Technology Bhd, Tenaga Nasional Bhd and Globetronics Technology Bhd.

Asian shares edged higher on Thursday, tracking some modest Wall Street gains after the US Federal Reserve (Fed) cut interest rates as expected but offered mixed signals on the next easing, keeping investors cautious, according to Reuters.

The Treasury yield curve flattened as Fed chairman Jerome Powell dashed hopes he would signal further easing while division among central bankers has increased uncertainty over how much further rates might fall, it said.

Hong Leong IB Research said following the interest rate cut of 25 basis points by the Fed, investors were digesting the mixed views on the next course of actions by the Fed later this year.

"Hence, we believe traders will be shifting their attention towards the progress on the trade developments between the US and China (as next trade talks will be held in October) for further actions in the markets. The Dow trading range will be located around 26,800-27,400.

"On the local front, we opine broader sentiment to remain tepid, tracking the mixed sentiment from the Wall Street overnight as well as the softer crude oil prices following Saudi Arabia's oil facilities restoration progress, which may fully resume its production capabilities by end-November.

"The FBM KLCI could extend its sideways consolidation phase between the 1,580-1,620 levels," it said.