KLCI retreats on fresh worries over global economic slowdown

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KUALA LUMPUR (April 10): The FBM KLCI retreated in early trade in line with regional markets, as fresh worries of a global economic slowdown weighed on investor sentiment.

At 9.05am, the FBM KLCI shed 0.80 points to 1,641.14.

The top losers included Genting Plantations Bhd, Axiata Group Bhd, Magni-Tech Industries Bhd, Petron Malaysia Refining & Marketing Bhd, MBM Resources Bhd, Padini Holdings Bhd, Malaysia Airports Holdings Bhd and Hartalega Holdings Bhd.

Asian stocks declined Wednesday after renewed concern about a global economic slowdown and an escalation in trade tensions. Treasury yields steadied alongside the dollar, according to Bloomberg.

Shares in Japan bore the brunt of losses, with equities seeing modest declines in Seoul and Sydney. The S&P 500 Index fell for the first time in nine sessions as the Trump administration threatened tariffs on the European Union and the International Monetary Fund cut its global growth outlook to the lowest since the financial crisis. Australian bonds climbed, tracking overnight moves that saw the 10-year Treasury yield fall to 2.50 percent. The pound fluctuated as the European Union looked set to force the U.K to delay Brexit for as long as a year, it said.

Kenanga IB Research said Asian markets closed mostly higher as crude oil prices continue to advance due to the recent resurgence of conflict in a key oil producer - Libya.

It said back home, the FBMKLCI slipped 2.41 points (-0.15%) to close at 1,641.94 yesterday.

“The index appears to be consolidating, evidenced by the narrowing distance between the key SMAs.

“However, we believe there is a possibility that the index may rebound, as RSI seems to be bouncing off from the oversold zone.

“We look towards 1,660 (R1) and 1,700 (R2) as resistance levels,” it said.