Muted start for KLCI as index-linked stocks weigh

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KUALA LUMPUR (June 18): The FBM KLCI got off to a muted start this morning as key index index-linked stocks drifted lower, tracking cautious regional markets.

At 9.05am, the FBM KLCI  dipped 1.29 points to 1,637.11.

The early decliners included Can-One Bhd, Petronas Gas Bhd, Muhibbah Engineering (M) Bhd, Boustead Heavy Industries Corp Bhd, MSM Malaysia Holdings Bhd, Sunway Construction Group Bhd, Public Bank Bhd and Padini Holdings Bhd.

Investor caution ahead of the Federal Reserve's interest rate meeting capped Asian stocks on Tuesday, while crude oil prices retreated as global growth worries overshadowed supply concerns stemming from recent Middle East tensions, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.05%, it said.

CIMB Retail Research said the local market sentiment remained tepid in line with the mixed performance across Asian markets.

It said the FBM KLCI Index was flat after inching down 0.2 points to close at 1,638.40.

“The focus will be on Central Banks with the Fed, the Bank of England and the Bank of Japan having key meetings this week.

“These meeting are likely to keep the global markets on their toes.

“According to CNBC and Reuters, an interest rate cut by the Fed is widely expected Chart-wise, the consolidation from the 1,657 high is likely to continue. Resistance: 1,657 & 1,670. Support: 1,633 & 1,617,” it said.