KLCI pulls back, tracks regional losses

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KUALA LUMPUR (Feb 28): The FBM KLCI pulled back in early trade this morning, tracking losses at most regional markets,and slipped to below the 1,870-point level.

At 9.05am, the FBM KLCI fell 2.34 point to 1,869.12.

The top losers included Dutch Lady Milk Industries Bhd, Hengyuan Refining Company Bhd, Thong Guan Industries Bhd, IQ Group Bhd, Petron Malaysia Refining & Marketing Bhd, Lysaght Galvanized Steel Bhd and AirAsia Bhd.

Asian shares faltered on Wednesday and bonds were sold off as risk appetite soured after comments from new Federal Reserve Chair revived fears about faster rate rises in the United States, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent, on track for a second straight day of losses, it said.

JF Apex Securities Research in a market preview said US markets declined overnight as Treasury yields surged after new Federal Reserve Chair Jerome Powell noted that the Fed will continue to raise interest rate to contain inflation.

It said that earlier, European stocks dropped after being dragged by chemical and household goods counters amid quarterly earnings.

“On the local market, the FBM KLCI surged 11.38 points to 1871.46 points with buying interests on banking stocks.

“Following the decline in US and European markets, the FBM KLCI is expected to pull back and hover below the resistance of 1880 points,” it said.