KLCI slides below 1,600 level as investor mood turns sour

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KUALA LUMPUR (Sept 29): The FBM KLCI lost 0.6% at the midday break today in line with the slump at most regional markets as decliners hammered advancers at the local bourse

At 12.30pm, the FBM KLCI fell 9.44 points to 1,598.99.

Losers led gainers by 539 to 163, while 221 counters traded unchanged. Volume was 995.58 million shares valued at RM1.02 billion.

The top losers included British American Tobacco (M) Bhd, UMW Holdings Bhd, Dutch Lady Milk Industries Bhd, PPB Group Bhd, Huat Lai Resources Bhd, Hong Leong Bank Bhd and RHB Capital Bhd.

The actively traded stocks included Al-Salam REIT, The Media Shoppe Bhd, AirAsia Bhd, UEM Sunrise Bhd, IFCA MSC Bhd and SapuraKencana Petroleum Bhd.

The top gainers included United Plantations Bhd, Hap Seng Plantations Bhd, Sarawak Oil Palms Bhd, Apollo Food Holdings Bhd, Kuala Lumpur Kepong Bhd, Malaysia Airports Holdings Bhd and Lii Hen Industries Bhd.

Asian shares skidded to 3½-year lows and the dollar sagged on Tuesday, pulled down by sharp losses on Wall Street after weak Chinese data rekindled worries about its fragile economy, according to Reuters.

Commodities struggled after fears of weaker demand pushed them to multi-year lows overnight. Adding to the gloom, commodity trader Glencore’s Hong Kong-listed shares were around 28% lower on Tuesday, after its London-listed stock plunged on debt worries a day earlier, it said.

Hong Leong IB Research said given the overnight Dow’s carnage, lingering internal (politics, 1MDB saga, sliding ringgit, weakening economic and corporate earnings growth coupled with renewed fears of a downgrade in Malaysia’s credit rating) and external (extended slowdown in China economy and the timing of Fed’s lift-off) headwinds, KLCI’s near-term outlook will remain chaotic.

“Key supports are 1,561–1,596 while resistances are 1,625–1,644,” it said.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)