KLCI falls 0.43% as global economic slowdown fear drags region

TheEdge Fri, Feb 08, 2019 10:19am - 5 years View Original


KUALA LUMPUR (Feb 8): The FBM KLCI fell 0.43% at mid-morning, dragged by key index-linked stocks, tracking the slip at regional markets.

At 10am, the FBM KLCI lost 7.27 points to 1,686.12.

Losers led gainers by 248 to 175, while 214 counters traded unchanged. Volume was 488.80 million shares valued at RM212.15 million.

The top losers included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, Genting Plantations Bhd, Fraser & Neave Holdings Bhd, Tenaga Nasional Bhd, Apollo Food Holdings Bhd, Hong Leong Financial Group Bhd, Axiata Group Bhd and MISC Bhd.

The actives included Bumi Armada Bhd, Sapura Energy Bhd, Alam Maritim Resources Bhd, Naim Holdings Bhd, KNM Group Bhd and Inix Technologies Bhd.

The gainers included Lysaght Galvanized Steel Bhd, Naim Holdings, Hong Leong Industries Bhd, Petronas Dagangan Bhd, Sentoria Group Bhd, Sapura Industries Bhd and Syarikat Takaful Malaysia Keluarga Bhd.

Asian stocks slipped on Friday as investors fretted about a broadening global economic slowdown, with sentiment not helped by the absence of any positive signs for a resolution in the U.S.-China trade row, according to Reuters.

Safe-haven government bonds benefited in the face of growing anxiety over the global outlook, with German long-term debt yields falling to their lowest in over two years, it said.

Hong Leong IB Research said following overnight 0.9% pullback in Dow, near term Dow upbeat undertone has been interrupted and an extended consolidation is likely to prevail amid uncertainty and sometimes contradictory comments from Washington.

“Moreover, sentiment is likely to be compounded by heightened concerns over slowing global economy and US 2019 earnings outlook as 1Q19 earnings growth estimates have shrunk to below 1% from above 5% at the start of the year.

“Key supports are near 24600-25000 while resistances are set at 25500-25800,” it said.

On the FBM KLCI, the research house said athough the dovish Fed’s monetary stance and improving technical readings could spur KLCI to recapture the 1700-1705 levels in the near term, overnight slide on Dow and an uncertainty of the upcoming Feb reporting season may cap further upside beyond 1705 levels.

“Overall, we expect an extended range bound mode until further clarity from US-China meeting next week,” it said.

 

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