Tuesday 23 Jul 2024
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KUALA LUMPUR (Oct 14): The FBM KLCI closed 0.05% lower at 1,796.38 today, settling - for the second day - below the “psychological level” of 1,800, the lowest since Feb 6.

At 5pm, the KLCI was down 0.82 points to 1,796.38.

A remisier told TheEdge Markets.com over the phone that the KLCI was unlikely to move up further, as there are no leading indicators in sight, coupled with uncertainties in the global economy.

He pointed that the main thing to watch on the home-front would be the oil price.

Reuters reported today that oil prices flirted with four-year lows, weighed by global demand concerns and by signals from key Middle East producers that they plan to keep output high despite the latest shakeout in prices.

“There are downside risks to the global economy on the whole. And the G20 meeting last weekend showed there is no panacea to lift the economy,” Hirokazu Kabeya, senior strategist at Daiwa Securities, told the news agency.

Meanwhile, in a note this morning, UOB KayHian said the fact that the FBM KLCI’s close below the psychological level of 1,800 yesterday had placed a negative bias over the short to medium-term outlook.

“The relative strength index (RSI) line has dipped to extreme levels and is treading at oversold levels, which likely indicates further pressure on the index. In line with our earlier expectation, the correction should be far from over following weaker global equity performances,” the research house noted.

In the broader market, Bursa Malaysia saw 2.22 billion shares valued at RM2.45 billion exchanged hands.

Decliners beat gainers at 652 against 226, while 285 counters were unchanged.

British American Tobacco (Malaysia) Bhd led the gainers pack, up RM2.46 or 3.78% to RM67.60. Hong Leong Industries Bhd was the top loser, shedding RM1.92 or 29.86% to RM4.51.

Sumatec Resources Bhd was the most active stock with some 114.95 million shares traded.

Across the region, Japan’s Nikkei 225 fell 2.38% to 14,936.51, Hong Kong’s Hang Seng Index fell 0.41% to 23,047.97, while the Singapore’s Straits Times Index dropped 0.09% to 3,199.44.

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