KLCI reduces gains on China, Europe pessimism

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KUALA LUMPUR (Oct 15): The FBM KLCI reduced gains for a 1.28-point or 0.1% rise amid world economic growth concerns as investors warily eyed prospects in China and Europe.

China's lower inflation at 1.6% in September, and less optimistic views on major European economies like Germany and France have not augured well for global growth outlook.

Malaysia's KLCI settled at 1,797.66 points at 12.30pm. The KLCI had reduced gains as stocks like UMW Holdings Bhd and RHB Capital Bhd declined.

The KLCI had earlier reached an intraday high of 1,801.12 points on techical rebound. The rebound followed the index's losses in recent days.

Today, Reuters quoted CMC Markets Chief Market Analyst Ric Spooner as saying: "News of a very large drop in German business confidence reinforces concerns about the European economy.

"Problems in Europe are an ongoing headwind for other major economies including the US, and China is a negative for world growth," he said.

Bursa Malaysia saw some 844 million shares worth RM823 million changed hands. There were 337 gainers versus 313 decliners.

The top gainer was Dutch Lady Milk Industries Bhd while the leading decliner was Hong Leong Industries Bhd.

The most-active stock was Asia Bioenergy Technologies Bhd.
Across Asia, Japan's Nikkei 225 rose 0.46% while Hong Kong's Hang Seng added 0.66%.

Reuters reported that Asian stocks were cautiously up on Wednesday as benign inflation data in China and more gloom in the euro zone economy lent credence to fears of a faltering global economic recovery.