KLCI trends lower as Petronas-linked stocks drag

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KUALA LUMPUR (Oct 10): The FBM KLCI trended lower in early trade this morning, weighed by losses at Petronas-linked stocks.

At 9.05am, the FBM KLCI fell 1.75 points to 1,549.48.

The early decliners included Petronas Dagangan Bhd, Allianz Malaysia Bhd, Magni-Tech Industries Bhd, PPB Group Bhd, Petronas Chemicals Group Bhd, Press Metal Aluminium Holdings Bhd, Pentamaster Corp Bhd, Hap Seng Consolidated Bhd, KLCC Property Holdings Bhd and RHB Bank Bhd.

Stocks in Asia were primed for gains on optimism that the U.S. and China will make progress in trade talks this week despite some conflicting signals on the outlook. Treasuries fell, according to Bloomberg.

Futures pointed higher in Tokyo, Sydney and Hong Kong after the S&P 500 Index ended Wednesday up nearly 1%. The rally was fueled by speculation that China is still open to a partial deal with the U.S. But in a sign of how tenuous the new-found confidence is, stocks pared gains in the afternoon after a report that China sought to tamp down expectations for progress. Ten-year Treasury yields climbed to 1.58%. The yuan rose offshore for its biggest gain in almost a month, it said.

CGS-CIMB Retail Research said the FBMKLCI continued to fall yesterday, setting another 52-week low in the process.

“The benchmark is testing the 1,550 psychological level right now.

“We continue to expect lower prices ahead for the index as there are no signs of a reversal just yet. Resistance: 1,572 & 1,580. Support: 1,540 & 1,500,” it said.