KLCI falls 0.95% amid turbulent regional markets

KUALA LUMPUR (Aug 26): The FBM KLCI fell 0.95% in line with turbulent regional markets, dragged by losses at key index-linked stoks.

At 9.05am, the FBM KLCI lost 15.14 points to 1,594.19.

The early losers included United Plantations Bhd, DRB-Hicom Bhd, Malaysia Airports Holdings Bhd, Tenaga Nasional Bhd, Petronas Gas Bhd, Public Bank Bhd, British American Tobacco (M) Bhd and Hong Leong Bnk Bhd.

Asian shares seemed set for a turbulent start on Monday as the latest salvo in the U.S.-China trade war shook confidence in the world economy and sent investors steaming to the safe harbour of sovereign bonds and the Japanese yen, according to Reuters.

The Chinese yuan was also under pressure in early trade, with the dollar quoted up at 7.1763 and markets braced for more intervention from Beijing to support the currency, it said.

CGS-CIMB Retail Research said KLCI ended last week with a week-on-week gain of 10 points.

It said the protracted US-China trade war would continue to weigh on investors sentiment and also pose a threat to global economic growth.

“The overnight Wall Street slump could potentially lead to a gap-down move in the local barometer today.

“With the uncertain 2Q corporate earnings looming, trading is expected to be cautious at best this week.

“A decisive break below 1,600 would send the index down towards the 1,572-1,581 levels next. While the outlook for the market remains sluggish, any positive news coming from the trade disputes is likely to trigger a significant rebound. Resistance: 1,620 & 1,640. Support: 1,581 & 1,572,” it said.

Source: TheEdgeMarkets