KLCI tracks regional slump, falls 0.97% as key blue chips drag

KLCI tracks regional slump, falls 0.97% as key blue chips drag

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KUALA LUMPUR (Aug 15): The FBM KLCI fell 0.97% in early trade this morning, tracking the slump at regional markets following the overnight slide at Wall Street.

At 9.05am, the FBMKLCI lost 15.51 points to 1,584.80.

The early losers included Nestle (M) Bhd, Carlsberg Brewery Malaysia Bhd, Genting Plantations Bhd, Public Bank Bhd, Hong Leong Financial Group Bhd, Petronas Gas Bhd, Petronas Chemicals Group Bhd, Ta Ann Holdings Bhd, Hong Leong Industries Bhd and Fraser & Neave Holdings Bhd.

Global stocks slumped to more than two-month lows in early Asian trade on Thursday, tracking the Wall Street slide as an inverted U.S. bond yield curve sent a flashing warning to investors about rising recession risks, according to Reuters.

Yields on 10-year U.S. Treasury notes fell below the two-year yield, intra-day, for the first time since 2007, in what is known as a yield curve inversion and widely seen by investors as a sign that a recession is coming, it said.

CGS-CIMB Retail Research said the local benchmark staged a mild rebound yesterday following the Trump’s China tariff delay.

It said the overnight Wall Street slump would dent market sentiment again and send KLCI lower today, adding that 1,572 remains the critical support for the benchmark.

“Global investors are increasingly worried about a global economic recession given the weaker-than-estimated data in China, Germany’s negative GDP growth, and also the protracted US-China trade war.

“Adding to the fears is the US and UK inverted yield curve, which are flagging a higher chance of a global recession over the next 12 months. Resistance: 1,620 & 1,640. Support: 1,589 & 1,572,” it said.