KLCI slips as global tech growth worries dampen region's sentiment

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KUALA LUMPUR (Oct 23): The FBM KLCI settled 5.3 points or 0.34% lower at 1,568.79 today, as it tracked regional peers into negative territory following fresh concerns about global economic growth.

The top decliner in terms of percentage among the 30 KLCI-linked stocks was Hong Leong Financial Group Bhd, which closed 56 sen or 3.29% lower at RM16.46.

In the broader market, some 2.61 billion shares worth RM1.69 billion were traded, as losers led gainers 413 to 311, while 493 counters remained unchanged.

Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com the KLCI joined its regional peers in the negative territory today, with selling pressure seen on blue chips. Small to mid-cap stocks, in comparison, performed better, he said.

Except for the FBM Small Cap, FBM ACE, Plantation, Energy, Helathcare and Real Estate Investment Trust (REIT) indices, all other Bursa Malaysia indices finished in the red.

Specifically, the FBM Small Cap was up 16.84 points or 0.12%, while the FBM ACE settled 46.31 points or 0.96% higher.

Meanwhile, Plantation index rose 4.91 points or 0.07% higher, Energy index was up 35.78 points or 3.07%, Healthcare index ended 1.64 points or 0.13% higher, and the REIT index settled 3 points or 0.31% higher.

US stock futures and Asian shares slipped on Wednesday as revenue warnings from US chipmaker Texas Instruments raised worries about the global tech sector, and after British lawmakers forced the Government to hit the pause button on the latest Brexit deal, according to Reuters.

“Worries that the global microchip industry is being squeezed by a downturn in demand and a prolonged US-China trade dispute sent some Asian chip-related shares lower,” it added.

Bursa's Technology index was down 0.17 points or 0.45% to close at 37.68.