KLCI falls 1.51% as coronavirus fears eclipse RM20b stimulus package

KUALA LUMPUR (Feb 28): The FBM KLCI fell 1.51% in early trade this morning, tracking the steep losses at global markets, as the fears over coronavirus eclipsed the RM20 billion stimulus package announced a day earlier.

At 9.05am, the FBM KLCI lost 22.42 points to 1,483.17.

The top losers included Nestle (M) Bhd, Carlsberg Brewery Malaysia Bhd, Fraser & Neave Holdings Bhd, Kuala Lumpur Kepong Bhd, Genting Plantations Bhd, British American Tobacco (M) Bhd, PPB Group Bhd, Dutch Lady Milk Industries Bhd, Petronas Gas Bhd and Petronas Dagangan Bhd.

Bloomberg said Asian stocks began another brutal session on Friday as fears about the coronavirus gripped global markets following the biggest tumble for U.S. equities since 2011. The rally in sovereign bonds eased after yields hit record lows.

Losses for Japan’s Nikkei 225 topped 3% in early trading, and Australian stocks saw similar declines. The S&P 500 slumped over 4% Thursday after California said it was monitoring 8,400 people for signs of the virus after they had traveled to Asia. U.S. futures ticked higher, though remained volatile. Global shares are down about 10% from this month’s peak and are heading for the worst week since the 2008 crisis. Yields on 10-year U.S. and Australian government bonds edged up, it said.

JF Apex Securities Research said US markets plunged over 4% overnight following rising concern over the coronavirus outbreak.

It said similarly, European stocks tumbled as the coronavirus continues to spread.

“On the local market, the FBM KLCI gained 10.40 points to 1505.59 points.

“Following the bearish sentiment in global markets, the FBM KLCI could remain pressured with support at 1480 points,” it said.

Source: TheEdgeMarkets