KLCI opens lower due to regional decline, stays below 1,600-level
KUALA LUMPUR: The FBM KLCI started lower in early trade, tracking the decline at regional markets, weighed by select index-linked stocks.
At 9.05am, the FBM KLCI fell 3.06 points to 1,599.69.
The early decliners included Focus Lumber Bhd, Sime Darby Plantation Bhd, Kuala Lumpur Kepong Bhd, Hengyuan Refining Company Bhd, Press Metal Aluminium Holdings Bhd, Axiata Group Bhd, Petron Malaysia Refining & Marketing Bhd and Telekom Malaysia Bhd.
Stocks in Asia looked set to decline after a weak US session and a further move lower in Treasury yields as investors assessed the latest news on trade talks and awaited more clues on monetary policy, according to Bloomberg.
Futures fell in Japan, Hong Kong and Australia. The S&P 500 Index closed lower as US President Donald Trump showed no urgency to resolve trade friction with China and renewed his call for a “big” Federal Reserve rate cut.
Benchmark 10-year yields declined while the dollar retreated from this year’s high. Italian bonds jumped as Prime Minister Giuseppe Conte resigned, with the prospect of an alternative coalition still on the table, it said.
CGS-CIMB Research said the local barometer gained 6.3 points yesterday as hopes for stimulus in major economies tempered anxiety about a global recession.
However, it said the market breadth turned negative with 400 losers outpacing 369 gainers. KLCI staged a rebound yesterday, as expected earlier.
“Given that both MACD and RSI are starting to turn up again, the index may still inch a tad higher today.
“However, we will not rule out cautious sentiments prevailing amid the uncertain August reporting month. Resistance: 1,620 & 1,640. Support: 1,589 & 1,572,” it said.
The Edge
