KLCI reverses gain as sentiment stays wary

-A +A

KUALA LUMPUR (May 10): The FBM KLCI reversed its earlier gain and dipped at morning today, as sentiment remained wary just hours before tariffs by the US on China imports were to take effect.

At 10am, the FBM KLCI shed 1.13 points to 1,617.40. The index had earlier risen to a high of 1,620.40.

Gainers led losers by 307 to 191, while 270 counters traded unchanged. Volume was 471.60 million shares valued at RM247.79 million.

The top losers included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Ajinomoto (M) Bhd and Malaysia-listed Hang Seng Index-linked put warrants.

The actives included MQ Technology Bhd, Ekovest Bhd, Bumi Armada Bhd, Sterling Progress Bhd and Sapura Energy Bhd.

The gainers included British American Tobacco (M) Bhd, Dutch Lady Milk Industries Bhd, Carlsberg Brewery Malaysia Bhd, Guan Chong Bhd and Country View Bhd.

Asian shares inched up from two-month lows on Friday just hours ahead of the Trump administration's plan to raise tariffs on Chinese imports as investors looked to whether negotiators from the two countries can clinch a deal to avert the hike, according to Reuters.

US President Donald Trump said on Thursday he had received a "beautiful letter" from Chinese President Xi Jinping, stoking hopes that Washington may suspend its plan to raise tariffs on US$200 billion worth of Chinese goods to 25% from 10%. That provided some support for stocks in early Asian trade though sentiment remains cautious, it said.

Hong Leong IB Research said that in the US, it expects the market sentiment to stay on the sidelines, trending in the sideways consolidation phase ahead of the conclusion of the upcoming US-China trade talks, led by Vice Premier Liu He.

"Should there be any negative surprises from the discussion, we opine further volatile moves could be seen on major indexes on Wall Street over the near term. The Dow's resistance is envisaged around 26,300-26,952.

"Despite Wall Street trending lower for another session (smaller decline as compared to previous two trading days), we believe bargain-hunting activities may emerge on the KLCI, given the formation of a few bullish candlesticks (three hammers and one bullish engulfing) over the past four trading days. Nevertheless, upside may be limited awaiting more clarity from the US-China trade discussions by Friday. The FBM KLCI's support located around 1,610-1,623," it said.