Malaysia stocks end lower for third consecutive day

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KUALA LUMPUR (June 13): Malaysia stocks finished lower for the third straight trading session today amid lingering US-China trade woes and lack of fresh catalysts. 

The FBM KLCI fell 7 points or 0.42% to end at 1,643.74. The benchmark index was trading between 1,640.30 and 1,646.22 throughout the day.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI has breached its estimated immediate support level of 1,650. 

“The weakness in the KLCI today mirrors the weaker performance across regional markets, given the external headwinds arising from the US-China trade war concerns and lack of fresh catalysts on the local front,” he said. 

With the breakout of the support level, Leong foresees some weaknesses for the benchmark index in the near term, with its new immediate support level being 1,630. However, the resistant level is expected to remain at 1,665.

Greatech Technology Bhd, Sapura Energy Bhd, Ekovest Bhd and Priceworth International Bhd were among most active stocks on Bursa Malaysia.

Trading volume increased to 2.04 billion shares worth RM1.98 billion compared with yesterday's 1.76 billion shares worth RM1.6 billion. There were 379 gainers versus 340 decliners, while 451 counters remained unchanged. 

Regionally, Reuters reported that Asian shares closed lower on Thursday as the Hong Kong market fell for the second consecutive session following a day of massive street protests, while oil prices flirted with five-month lows due to higher US crude inventories and a bleak demand outlook.

“Hopes that the US and China will clinch a deal on the sidelines of a Group of 20 summit meeting in Osaka on June 28 and 29 have been fading, also hurting sentiment and driving bond yields down,” the report added.

“It is a bit of mystery that oil prices are so low when global stock prices remain relatively supported. But one thing is certain. Weaker oil prices will curb inflation and boost rate cut expectations,” the report quoted Hirokazu Kabeya, chief global strategist at Daiwa Securities, as saying.