Banks drag KLCI into the red, Asian markets cautious

KUALA LUMPUR: Banks weighed on the FBM KLCI early Tuesday as worries about new taxes, slower economic growth and the US-China trade war tensions pushed investors to the sidelines, with more downside seen.

At 9.07am, the FBM KLCI was down 3.63 points or 0.21% to 1,718.84. Turnover was 68.62 million shares valued at RM41.63mil. There were 71 gainers, 112 losers and 130 counters unchanged.

Asian shares edged lower as earnings season nerves in the US dented Wall Street, while a cocktail of negative factors from Saudi Arabia's diplomatic isolation to concerns over Italy's budget and Brexit talks depressed sentiment, Reuters reported.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4%. Japan's Nikkei fell 1.25%. US stock futures dropped 0.5% in early Asian trade.

On Monday, foreign funds were net buyers at RM34mil and retail investors  at RM33.2mil while local institutions were net sellers at RM67.2mil.

Hong Leong Bank lost 22 sen to RM20.40, CIMB and Maybank six sen lower at RM5.92 and RM9.54 while Public Bank lost four sen to RM24.94.

F&N was the top loser, down 82 sen to RM34.20, MPI 30 sen to RM12.24 and MGB 4.5 sen to 71 sen.

Heineken gained 16 sen to RM17.74, Elsoft eight sen to RM3.28, Axiata and Prestarian four sen each to RM3.53 and 48 sen.