KLCI starts lower, Asian stocks steady on China stimulus

-A +A

KUALA LUMPUR (Feb 5): The FBM KLCI opened down today before extending its drop on profit taking after the index closed up substantially yesterday as investors took cue from China's effort to stimulate its economy and mitigate the coronavirus outbreak concerns.

At Bursa Malaysia today, the KLCI fell 0.07 point to 1,535.73 at 9:01am before dropping 3.09 points to 1,532.71 at 9:03am. Yesterday, the KLCI closed 13.85 points or 0.91% higher at 1,535.80 to mark its first rise after ten consecutive trading days of losses.

Across Bursa today, top decliners included Malaysian Pacific Industries Bhd besides KLCI stocks Hong Leong Financial Group Bhd and Petronas Chemicals Group Bhd.

Despite the KLCI's drop, analysts appeared optimistic that Malaysian shares will extend their rise today.

TA Securities Holdings Bhd wrote in a note : "Stocks should extend rebound today on lessening panic over the coronavirus epidemic, as global markets stabilise after China implemented stimulus."

Globally, Reuters reported that Asian stocks steadied on Wednesday on hopes of additional Chinese stimulus to lessen the economic impact of the coronavirus outbreak, but risks remain as the illness continues to spread and the death toll neared 500.

It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3%. Australian shares were up 0.58%, while Japan's Nikkei stock index rose 1.19%, acccording to Reuters.