KLCI trends lower in line with region after Apple revenue warning

KUALA LUMPUR (Feb 18): The FBM KLCI trended lower in early trade this morning, tracking regional losses following tech giant Apple Inc’s revenue warning.

At 9.05am, the FBM KLCI fell 1.83 points to 1,525.29.

The top losers in early trade included Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Globetronics Technology Bhd, Malayan Cement Bhd, Carlsberg Brewery Malaysia Bhd, Gamuda Bhd, Petronas Chemicals Group Bhd, Icon Offshore Bhd, Press Metal Aluminium Holdings Bhd and Hartalega Holdings Bhd.

Reuters said U.S. stock futures slipped from record levels on Tuesday after Apple Inc said it will not meet its revenue guidance for the March quarter as the coronavirus outbreak slowed production and weakened demand in China.

The warning from the most valuable company in the United States sobered investor optimism that economic stimulus by Beijing and other countries would protect the global economy from the effects of the epidemic, it said.

JF Apex Securities Research said US markets ended flat overnight amid corporate earnings and slower consumer spending.

It said that earlier, European stocks climbed after China’s central bank reduce interest rates to bolster the economy from the coronavirus impact.

“On the local market, the FBM KLCI slumped 7.34 points to 1537.12 points.

“Following the mixed performances in the US and Europe, the FBM KLCI could remain sideways above the support of 1520 points,” it said.

Source: TheEdgeMarkets