KLCI seen taking a breather in line with mixed regional markets, tracking overnight dip on Wall St

KUALA LUMPUR (July 29): The FBM KLCI got off to a cautious start today as the local index was expected to take a breather, tracking regional markets on the back of an overnight decline on Wall Street.

At 9.05am, the bellwether index had added 0.71 points to 1,610.65.

The early gainers included DKSH Holdings (Malaysia) Bhd, Syarikat Takaful Malaysia Keluarga Bhd, Rubberex Corp (M) Bhd, Bursa Malaysia Bhd, Tomei Consolidated Bhd, Poh Kong Holdings Bhd, United Plantations Bhd, SAM Engineering & Equipment (M) Bhd and BIMB Holdings Bhd.

Bloomberg said Asian stocks opened mixed as investors awaited the conclusion of the US Federal Reserve’s (Fed) policy meeting.

Treasuries held overnight gains and the US dollar steadied, it said.

Rakuten Trade Sdn Bhd in its daily market report said Wall Street declined as traders became concerned over corporate earnings as well as the impact of the purported new stimulus package from the Fed.

It said as a result, the Dow Jones Industrial Average lost 205 points to around the 26,380 level.

“Meanwhile, the US 10-year Treasury rate dipped below 0.6% to 0.58%, which was also a three-month low.

“Regional equities are expected to remain mixed today on the lack of catalysts.

“As for the local bourse, following a solid performance yesterday, we expect the FBM KLCI to be possibly take a breather today and trend within the tight range of 1,600-1,610,” it said.

Source: TheEdgeMarkets