News of fresh trade talks fails to lift KLCI as foreign selling continues

News of fresh trade talks fails to lift KLCI as foreign selling continues
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KUALA LUMPUR (Sept 5): News of a fresh round of trade talks between the US and China early next month failed to spur buying interest on Bursa Malaysia. The FBM KLCI was flat today no thanks to the foreign funds’ selling spree amid absence of buying impetus and disappointment on earnings performance for the quarter ended June 30.

The benchmark index had earlier slipped 7.05 points to a low of 1,592.84 earlier today before finishing at 1,599.75 at market close today, still lower by 0.14 points from its Wednesday close.

Meanwhile, the index for small market capitalisation stocks closed down 24.5 points or 0.19% at 12,872.33.

Market breadth was negative with more losers than gainers at 431 versus 308 at the end of the trading day. Total turnover remained below the two billion mark at 1.85 billion shares worth RM1.58 billion.

Priceworth International Bhd continued to top Bursa Malaysia’s most active list, after the company announced Innoprise Corp Sdn Bhd would surface as a 30% stakeholder in the company pursuant to a log supply agreement that has been signed.

Today, Inter-Pacific Securities research head Pong Teng Siew told the market was sluggish as there was continued foreign selling after a fairly disappointing set of corporate earnings that concluded last week.

“Foreign selling is playing a big role in the market’s continued softness. Also, money supply growth is seen as slowing, indicating that liquidity is not growing as fast as the economy, leaving players in the economy thinking there is less money around to lubricate economic transactions,” he explained.

Asian shares were mostly higher Thursday after China said it will hold trade talks with the US in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy, Reuters reported.

In Tokyo, the Nikkei 225 gained 2.12% at its close and South Korea’s Kospi finished 0.82% higher, while the Shanghai Stock Exchange Composite Index is up 0.96%.

The Hong Kong Hang Seng Index is down 0.03% on profit-taking after it jumped nearly 1,000 points yesterday, ahead of Hong Kong announcement of withdrawing its contentious extradition bill that ignited months of protests.