KLCI falls 1.27% as global equity rout deepens

TheEdge Thu, Mar 12, 2020 09:10am - 1 year ago

KUALA LUMPUR (March 12): Malaysian stocks fell in early trade in line with the slump at most global markets and the FBM KLCI lost 1.27%, dragged by key index-linked stocks.  

At 9.0.5am, the FBM KLCI lost 18.12 points to 1,425.71.

The early losers included Carlsberg Brewery Malaysia Bhd, Fraser & Neave Holdings Bhd, PPB Group Bhd, KESM Industries Bhd, Allianz Malaysia Bhd, Petronas Dagangan Bhd, British American Tobacco (M) Bhd, Sime Darby Plantation Bhd, Kumpulan Powernet Bhd and Atlan Holdings Bhd.

Bloomberg said a global equity rout looked set to deepen in Asia on Thursday after a renewed sell-off in U.S. equities, with investors concerned by a lack of clarity from the Trump administration on a coronavirus stimulus package. Treasury yields rose in a volatile session.

The World Health Organization called the virus spread a pandemic and the Dow Jones Industrial Average tipped into a bear market, ending the longest bull-run in history for U.S. shares. U.S. equity futures opened higher after the S&P 500 lost 4.9% on Wednesday and futures indicated a lower start in Japan, Hong Kong and Australia. The yen climbed and oil tumbled, it said.

JF Apex Securities Research said the Dow Jones Industrial Average tumbled 5.9% with the rapid spread of the coronavirus as well as uncertainty around a fiscal response to curb slower economic growth.

It said that similarly, the pan-European Stoxx 600 closed down 0.7%, as investors closely monitored the outbreak of the virus.

Earlier, the Bank of England announced an emergency cut to interest rate in an attempt to cushion the impact of coronavirus.

“On the local market, the FBM KLCI rose 13.36 points to 1443.83 points on bargain hunting.

“Following the negative performance in Wall Street, the FBM KLCI could trend sideways with its resistance level of 1450 points and support level of 1400 points,” it said.

Related Stocks

ALLIANZ 13.400
APEX 0.960
ATLAN 3.190
BAT 13.800
CARLSBG 23.100
F&N 30.000
KESM 12.100
KPOWER 2.020
PETDAG 20.260
PPB 18.580
SIME 2.340


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