Rough start for KLCI after Wall Street slide

KUALA LUMPUR: Blue chips fell in early Wednesday trade, with the FBM KLCI down nearly 12 points, as investors turned cautious after the overnight fall on Wall Street.

At 9.28am, the KLCI was down 8.99 points or 0.55% to 1,624.40. Turnover was 330.92 million shares valued at RM146.31mil. There were 102 gainers, 233 losers and 217 counters unchanged.

Asian shares weakened on Wednesday after strong US inflation data and comments from Federal Reserve officials rekindled prospects of the central bank raising rates later this year, Reuters reported.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5% in early trade.

 Expectations of further inflation are stoked by a recent recovery in oil prices, which hit seven-month highs on Tuesday on expectations of a drawdown in US crude stockpiles and a new wildfire threat on Canadian oil supplies.

US crude futures hit a high of US$48.76 per barrel late on Tuesday and last stood at US$48.45.

Brent crude traded at US$49.46, staying near a 6 1/2-month high of US$49.75 hit on Monday and Tuesday, and up more than 80% from a 12-year low of US$27.10 hit in January.

At Bursa, electronic products maker Salutica came off the firm debut, eking out just a 1.5 sen gain to 81.5 sen after opening at 86.5 sen.

Petronas Gas fell 30 sen to RM21.15, Genting Bhd 10 sen to RM8.70 and UMW nine sen to RM5.68.

Among the plantations, KL Kepong lost 20 sen to RM22.80 and PPB Group 16 sen to RM15.84 while Ta Ann was down 11 sen to RM4.39.

As for the finance and banks, Hong Leong Bank was down 18 sen to RM13.26 and HLG fell 12 sen to RM14.84.

AirAsia  was flat RM2.33, AAX shed 1.5 sen to 40 sen and the warrants lost 1.5 sen to 32 sen.

Consumer stocks fared better, with Nestle up 48 sen to RM75, Carlsberg 14 sen to RM12.98. Malayan Flour Mills added six sen to RM1.27.