KLCI falls 0.65% due to possible US-Europe trade war

KLCI falls 0.65% due to possible US-Europe trade war

KUALA LUMPUR: The FBM KLCI lost 0.65% at mid-morning today as sentiment turned weak in line with the downward trend at regional markets on worries of a fresh trade war between US and Europe.

At 10am, the FBM KLCI lost 10.23 points to 1,564.67.

Losers outpaced gainers by 382 to 108, while 294 counters traded unchanged. Volume was 585.69 million shares valued at RM237.89 million.

The top losers included Dutch Lady Milk Industries Bhd, Public Bank Bhd, PPB Group Bhd, British American Tobacco (M) Bhd, Hong Leong Financial Group Bhd, Hong Leong Bank Bhd and Aeon Credit Service (M) Bhd.

The actives included Bumi Armada Bhd, Vsolar Group Bhd, Sumatec Resources Bhd, Sapura Energy Bhd, Borneo Oil Bhd and Ekovest Bhd.

The gainers included Kluang Rubber Company (Malaya) Bhd, Batu Kawan Bhd, SAM Engineering & Equipment (M) Bhd, Guan Chong Bhd, C.I. Holdings Bhd and Hengyuang Refining Company Bhd.

Asian stocks, already under pressure from growing global growth fears, tumbled after New York markets slumped overnight as the US opened a new trade war front by saying it will impose tariffs on US$7.5 billion of goods from the European Union, according to Reuters.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.38%. Japan’s Nikkei stock index dropped 1.96% and Australian shares declined 2.19%, it said.

JF Apex Research said US markets plunged overnight following lingering concerns of an economic slowdown after the recent manufacturing data. Earlier, European stocks tumbled amid fears of a global recession and developments in Brexit.

“On the local market, the FBM KLCI plunged 14.54 points to 1,574.90 points.

“Following the bearish performances in the US and Europe, the FBM KLCI could test its support of 1,570 points,” it said.

The Edge Daily

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