KLCI extends fall as recession fears deepen

KUALA LUMPUR: The FBM KLCI extended its fall in early Wednesday trade, tracking Wall Street’s negative performance as the bond market continued to flash a recession warning.

Overnight, the major US equities indices fell back as the US yield curve inversion deepened to 2007 levels.

At 9.10am, the local index was down 2.25 points to 1,588.59.

Kenanga research believes the index remains bearish as it is below all the key simple moving averages.

However, a technical rebound is possible as the stochastic has been in oversold territory for an extended period of time.

“Look out for overhead resistance levels at 1,630 (R1) and 1,650 (R2).

“Should selling pressure continue, key support levels to keep an eye on are 1,570 (S1) and 1,550 (S2),” it said in its outlook.

For Wednesday, some early gainers included stocks that had recently announced their quarterly results.

Nestle rose 40 sen to RM149, Time dotCom gained 25 sen to RM9.15 and UMW climbed nine sen to RM5.13.

Alliance Bank, which had shed over 10% in the previous session as its earnings fell below expectations, rebounded four sen or 1.4% to RM2.96.

Among the active movers, Iris was flat at 16 sen, Icon flat at six sen and Kanger up 0.5 sen to eight sen.

Source: TheStar