Bursa caps losses as investors look ahead to trade discussions

KUALA LUMPUR: BUrsa Malaysia retraced losses to end slightly lower at the close of the morning session as other Asian markets turned bullish on bets that policy makers will move towards easing trade tensions.

Recent economic data that showed a slowdown in both US and China manufacturing activity precipitated a selloff in global equities, even as bellwether stock Apple Inc cut its revenue forecast on slowing demand.

At midday break, the Shanghai Composite Index was up 1.8%, Hong Kong's Hang Seng was up 1.3% and South Korea's Kospi had gained 0.6%.

In Southeast Asia, most stocks were in the green led by a 1.6% surge in the Philippines Stock Exchange Index. Singapore's Straits Times Index grew 0.9% and Jakarta's Composite Index gained 0.6% 

At 12.30pm, the FBM KLCI was down 2.14 points to 1,673.69. Turnover was 1.14 billion shares valued at RM519.23mil. There were 362 decliners versus 302 gainers and 326 counters unchanged.

Declining stocks included Axiata falling three sen to RM3.879, Nestle sliding RM1.50 to RM146, IOI down four sen to RM4.42. 

IHH led gains with a 15 sen increase to RM5.49. Maxis gained three sen to RM5.48 and Petronas Dagangan rose 12 sen to RM25.88.

Damansara Realty took the spotlight in the morning session as it surged 15.5 sen or 67.4% to 38.5 sen.

Tech stocks with exposure to the Apple supply chain extended losses following the tech giant's revenue warning on Wednesday.

Globetronic, which shed 14% in yesterday's trading lost another four sen to RM1.44

Inari lost about 13.5% in the previous session and fell a further three sen to RM1.24.

MPI is seeing its fifth straight day of decline, dropping 10 sen to RM9.71.

Oil prices steadied ahead of Jan 7-8 talks between the US and China on hopes the trade conflict can be resolved.

US crude gained 18 cents to US$47.27 a barrel while Brent crude gained 13 cent sto US$56.08.

In currencies the ringgit was marginally higher against the US dollar at 4.1415, but fell 0.55% against the pound sterling at 5.2334 and 0.2% against the Singapore dollar at 3.0392.