KUALA LUMPUR (June 27): The FBM KLCI started off on negative footing Thursday morning in line with the listless regional markets, after US President Donald Trump said substantial additional U.S. tariffs would be placed on goods from China if there is no progress on a trade deal after his planned meeting with Chinese counterpart Xi Jinping at the G-20 Summit in Japan.
At 9.05am, the FBM KLCI drifted 2.39 points lower to 1,672.10.
The early decliners included British American Tobacco (M) Bhd, Yinson Holdings Bhd, Westports Holdings Bhd, PPB Group Bhd, IHH Healthcare Bhd, Hong Leong Financial Group Bhd, IOI Corp Bhd and Press Metal Aluminium Holdings Bhd.
Asian markets were busy going nowhere on Thursday as confusion shrouded the chances of any progress in the Sino-U.S. trade standoff, while bulls scaled back wagers for a drastic cut in U.S. interest rates, according to Reuters.
President Donald Trump said on Wednesday that a trade deal with Chinese President Xi Jinping was possible this weekend but warned he was prepared to impose U.S. tariffs on virtually all remaining Chinese imports if talks fail, it said.
CIMB Retail Research said the local market traded in a tight range on the lack of market moving news or catalysts yesterday.
It said investors worldwide are looking for signs of what to expect from a meeting between Trump and Xi at the forthcoming G-20 summit in Osaka this weekend.
“Will the FBMKLCI break the 200-day EMA or will it reverse and head lower?
“Resistance: 1,682 & 1,700. Support: 1,657 & 1,643,” it said.