KUALA LUMPUR (Sept 9): The FBM KLCI slumped 1.44% and dropped below the 1,500-level in early trade Wednesday, tracking losses at regional markets and U.S. futures on concerns of a delay in a Covid-19 vaccine.
At 9.05am, the benchmark lost 21.56 points to 1,497.76.
The early losers included Petronas Dagangan Bhd, Panasonic Manufacturing Malaysia Bhd, Kossan Rubber Industries Bhd, Malaysian Pacific Industries Bhd, Carlsberg Brewery Malaysia Bhd, PPB Group Bhd, ViTrox Corp Bhd, Hartalega Holdings Bhd, Kuala Lumpur Kepong Bhd and UWC Bhd.
Bloomberg said Asian stocks opened lower and U.S. futures retreated amid worries that a Covid-19 vaccine could be delayed and concern about equity valuations.
The dollar and Treasuries extended gains, it said.
Rakuten Trade Sdn Bhd in its daily market report said US markets continues to see heavy sell off with tech stocks Tesla leading the fall.
It said Nasdaq has lost over 10% from the peak of 12,000 to 10, 847.69.
“We reckon the sell-off in the markets is merely a correction after hitting new highs recently hence investors should not be unduly worried.
“Regional market today is expected feel the heat and see general weakness.
“On the local front 1,500 as key support level for KLCI and expect bargain to emerge especially glove stocks. Hence, we advocate investors to “buy the dips,” it said.