KLCI dips 0.18% amid fresh China-US spat, tepid local sentiment

TheEdge Fri, Nov 29, 2019 10:16am - 4 years View Original


KUALA LUMPUR (Nov 29): The FBM KLCI dipped 0.18% at mid-morning today amid a fresh spat between China and the US, and tepid sentiment among domestic investors.

At 10am, the FBM KLCI fell 2.92 points to 1,580.85.

Losers led gainers by 393 to 168, while 270 counters traded unchanged. Volume was 653.14 million shares valued at RM467.51 million. 

The top losers included Pentamaster Corp Bhd, Tenaga Nasional Bhd, Muda Holdings Bhd, Can-One Bhd, Kumpulan Powernet Bhd, Hong Leong Bhd and Malaysian Pacific Industries Bhd.

The actives included Pentamaster, KNM Group Bhd, Green Packet Bhd, Bumi Armada Bhd and Zecon Bhd.

The gainers included Heineken Malaysia Bhd, Fraser & Neave Holdings Bhd, Sarawak Oil Palms Bhd, Zecon and SAM Engineering & Equipment Bhd.

Global shares ticked up on Friday, but hesitated to test an all-time peak as investors worried a new U.S. law backing Hong Kong protests could derail Washington's and Beijing's efforts to end their trade war, according to Reuters.

MSCI All Country world index, which tracks shares in 49 countries, were up 0.05% at 549.62, and would need to rise only 0.2% to reach all-time peak hit in January last year before the start of U.S.-China trade war, it said.

Hong Leong IB Research said in the short term, the Dow is likely to remain event-driven until an agreement can finally be reached by the US and China. Overall, Trump’s approval of the bill was not unexpected and neither was the stern reaction from Beijing, given China’s adamant rejections of any commentary on what it considers an internal issue.

However, it said the clash comes at a sensitive time and could upset already thorny trade negotiations.

“Technically, any overbought retracement is likely to be cushioned near 27100-27400 territory amid recent positive economic data and upbeat US 3Q19 results, whilst resistances are near 28500-29000 levels.

“On Bursa Malaysia, we expect sentiment to remain tepid owing to the earnings uncertainty by the Nov reporting season and renewed turmoil in the US-China trade deal after Trump signed bills backing HK protestors.

“Following recent breakdown below multiple key SMA supports, KLCI is envisaged to extend its consolidation but traditional window dressing activities in December and the conclusion of Nov reporting season next week are likely to lend some support, with key supports situated at 1564-1573 levels.

“On the contrary, stiff resistances are located around 1594-1606 levels,” it said.

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