KUALA LUMPUR (Aug 7): The FBM KLCI closed 7.09 points or 0.44% lower today dragged mainly by Genting Malaysia Bhd and Genting Bhd's substantial share price drop and as investors took profit against lingering US-China trade war concerns.

At 5pm, the KLCI closed at 1,604.7 after falling to its intraday low at 1,602.8. The KLCI closed down today as investors took profit after yesterday's 1.38-point or 0.09% rise.

Today, Genting Malaysia closed down 43 sen or 11.91% at RM3.18 to become the top percentage decliner among the KLCI's 30 components, followed by Genting Bhd and Public Bank Bhd.

Genting Bhd fell 47 sen or 7.07% to RM6.18 while Public Bank dropped 32 sen or 1.48% to RM21.28.

Genting Malaysia, which registered a volume of some 256 million shares, was also the most-active stock across Bursa Malaysia.

Genting Malaysia and Genting Bhd share prices dropped today following news yesterday that Tan Sri Lim Kok Thay, via Kien Huat Realty III Ltd, is selling 46% of the common stock in Nasdaq-listed gaming and entertainment company, Empire Resorts Inc, to Genting Malaysia for US$128.6 million cash or RM538.8 million.

www.theedgemarkets.com, quoting Genting Malaysia's Bursa filing yesterday, reported that the related party transaction is priced at US$9.74 per share of the common stock, some 13.2 million in all, which represent about 35% of the outstanding voting power of Empire on a fully diluted basis, after conversion of all outstanding preferred stocks into common stocks.

It was reported that Kien Huat currently controls an 84% stake in Empire, which has been loss making for the past two decades, according to Bloomberg. Empire posted a net loss of US$155.36 million for the financial year ended Dec 31, 2018 — the biggest ever loss, www.theedgemarkets.com reported.

Today, Rakuten Trade Sdn Bhd head of research Kenny Yee said the KLCI fell due to continued jittery sentiment against external uncertainties as a result of lingering worries on the ongoing US-China trade tension.

“Basically, today's decline in the KLCI is due to profit taking after yesterday’s rebound. Any upside, investors will try to lock in profit. In the very short term, markets will still be very volatile, and coupled with the announcement made by Genting Malaysia, it didn’t help much with the market conditions now,” he told theedgemarkets.com.

The KLCI tracked Asia stock indices' retreat amid lingering concerns on the escalating US-China trade war. Reuters reported that shares in Asia fell for an eighth straight session on Wednesday on lingering worries over the trade war, but losses and nerves were soothed somewhat by White House assurances that it wants to press ahead with negotiations.

It was reported that signs that China is stepping in to steady the yuan after its recent sharp fall also helped ease investors' fears of a possible global currency war, though the yuan slipped further in morning trade, keeping markets guessing.