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Bursa, Asian markets slide after Wall Street losses

KUALA LUMPUR: Bears were in control on Bursa Malaysia and key Asian markets following the overnight fall on Wall Street on global growth fears and US’s new trade war against the EU.

At 9.15am, the FBM KLCI was down 7.99 points or 0.51% to 1,566.91. Turnover was 234.33 million shares valued at RM89.04mil. There were 57 gainers, 305 losers and 165 counters unchanged.

Reuters reported Asian stocks, already under pressure from growing global growth fears, tumbled after New York markets slumped overnight after the US opened a new trade war front by saying it will impose tariffs on US$7.5bil of goods from the European Union.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.58%. Japan’s Nikkei stock index dropped 1.96% and Australian shares declined 2.19%.

Commenting on the technical outlook for the KLCI, Kenanga Research said the index was trading below all the key SMAs coupled with negative MACD indicator.

“Hence, we opine that bearish sentiment remains intact until further signal warrants a trend reversal. Key support levels to watch out for are 1,570 (S1) and 1,550 (S2). Conversely, overhead resistance levels can be found at 1,630 (R1) and 1,650 (R2), ” it said in its technical outlook.

On Wednesday, foreign funds stepped up their selling with the latest data showing they were net sellers at -RM168mil. Local retail investors also were net sellers at RM3.10mil. Local institutions shored up the selling to emerge net buyers at RM171.10mil.

Dutch Lady fell 60 sen to RM58.90 and BAT 32 sen to RM18.28.

As for banks, Public Bank extended its decline, down 28 sen to RM19.42 while Hong Leong Bank lost 22 sen to RM15.92.

Petronas Dagangan fell 26 sen to RM23.30, Petronas Chemical 11 sen to RM7.35 and Petronas Gas eight sen lower at RM16.38.

PPB Group gave up 20 sen to RM17.90 and GentingM shed three sen to RM3 in active trade.

However, Carlsberg rose 18 sen to RM26.28 with just 100 shares done.

Batu Kawan added 10 sen to RM15.80 and BIMB seven sen to RM4.07 while CI HOLDINGS edged up four sen to RM1.33.

Source: TheStar