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KLCI remains in the red in line with downbeat region

TheEdge Mon, Aug 05, 2019 10:20am - 6 months ago

KUALA LUMPUR (Aug 5): The FBM KLCI pared some of its loss but remained in the red at mid-morning as broader market sentiment stayed negative in line with the downbeat regional markets.

At 10am, the FBM KLCI lost 11.27 points to 1,615.49. The index had earlier slipped to a low of 1,613.13.

Market breath was negative with 484 losers and 108 gainers, while 238 counters traded unchanged. Volume was 621.49 million shares valued at RM243.86 million.

The top losers included Fraser & Neave Holdings Bhd, Kuala Lumpur Kepong Bhd, Petronas Dagangan Bhd, Nestle (M) Bhd, KESM Industries Bhd, Petronas Gas Bhd, Public Bank Bhd and Sime Darby Plantation Bhd.

The actives included Eduspec Holdings Bhd, Priceworth International Bhd, Green Packet Bhd, KNM Group Bhd, Sapura Energy Bhd, Bumi Armada Bhd, Ekovest Bhd and Barakah Offshore Petroleum Bhd.

The gainers included Hong Leong Industries Bhd, Allianz Malaysia Bhd, United Plantations Bhd, Tasek Corp Bhd and Malaysia-listed Hang Seng Index-linked put warrants.

Asian shares extended their losses on Monday as a sharp escalation in the Sino-US trade war kept financial markets on edge, while the Japanese yen and bonds held near recent peaks as nervous investors stuck with perceived safe havens, according to Reuters.

US President Donald Trump abruptly decided on Thursday to slap 10% tariffs on US$300 billion in Chinese imports, stunning markets and ending a month-long trade truce. China vowed on Friday to fight back, it said.

Hong Leong IB Research said with the resurfacing of trade worries after the surprise move by the US President, it may continue to put pressure on the stock markets as investors are fearful that the imposition of tariffs effective September 2019 may further disrupt global supply chains.

The Dow could revisit the support of 26,000 over the near term. Meanwhile, next trade negotiation is set to resume in Washington early September.

"Negative sentiment may extend on the local front following the tariffs threat by President Trump.

"Overall trend on the KLCI is likely to stay below the resistance of 1,650-1,658 zone over the near term.

"Nevertheless, we believe traders will focus on the upcoming reporting season this month to look for opportunities for companies that could beat the consensus estimates," it said.

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KESM 10.040
KLK 23.200
KNM 0.255
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PETDAG 22.000
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PWORTH 0.020
SAPRES 0.490
SIME 2.100
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