KLCI pares loss, remains negative in line with weaker region

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KUALA LUMPUR (Dec 5): The FBM KLCI pared some of its losses at mid-morning but remained in the negative zone in line with the weaker sentiment at regional markets.

At 10am, the FBM KLCI was down 7.70 points to 1,687.82. The index had earlier fallen to a low of 1,683.03.

Losers led gainers by 369 to 112, while 211 counters traded unchanged. Volume was 531.36 million shares valued at RM285.89 million.

The top losers included Fraser & Neave Holdings Bhd, Ajinomoto (M) Bhd, Cayha Mata Sarawak Bhd, KESM Industries Bhd, Tenaga Nasional Bhd, UMW Holdings Bhd, Nestle (M) Bhd and Heineken Malaysia Bhd.

The actives included Bumi Armada Bhd, Techbond Group Bhd, AirAsia X Bhd, Hibiscus Petroleum Bhd, Hubline Bhd, Permaju Industries Bhd and Nova MSC Bhd.

The gainers included Bintulu Port Holdings Bhd, Techbond, United Plantations Bhd, Milux Corp Bhd and Malaysia listed  Hang Seng Index-linked put warrants,

Asian stocks fell on Wednesday, dragged by Wall Street's tumble as sharp declines in long-term U.S. Treasury yields and resurgent trade concerns stoked investor worries about global economic growth, according to Reuters.

Global equities have been shaken as a flattening U.S. Treasury yield curve - a result of a steep fall in longer-dated yields - fanned recession jitters and as U.S.-China trade conflict woes resurfaced after a temporary lull, it said.

Hong Leong IB Research in a traders’ brief said in the US, following the recent trade discussions between US and China, investors are still having a cautious tone as vague and conflicting messages from the White House economic advisers have dampened the optimism on the fresh breakthrough.

“Also, without any clear statement or strategy from President Xi Jinping, market tone will remain uncertain over the near term. Hence, the Dow’s downside risk will persist at least for the near term.

“Selling pressure is likely to spill over on the local front and the FBM KLCI could face further weakness below the stiff resistance along 1,700 psychological level.

“Hence, traders may look into defensive utilities and high dividend yield sectors for the time being. Meanwhile, O&G stocks will remain volatile with the fluctuations of Brent oil prices ahead of the OPEC meeting,” it said.