KLCI, Asian markets cautious on mixed signals from US, China


KUALA LUMPUR: Blue chips continued to lose ground and the FBM KLCI continued to slide below the key 1, 600 level on Friday on mixed signals from the US and China.

At 9.20am, the KLCI was down 3.95 points or 0.25% to 1, 596.34. Turnover was 208.28 milion shares valued at RM81.19mil. There were 134 gainers, 115 losers and 175 counters unchanged.

Reuters reported Asian shares were heading for weekly losses as conflicting messages on the US-China trade war only added to worries for the global economy, while talk of aggressive central bank stimulus drove bond yields to fresh lows.

US President Donald Trump said on Thursday he believed China wanted to make a trade deal and that the dispute would be fairly short.

Beijing on Thursday vowed to counter the latest tariffs on US$300bil of Chinese goods but called on the US to meet it halfway on a potential trade deal.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.17%, to be down 1.4% for the week. Japan's Nikkei fell 0.5%, making a loss of 1.8% on the week, while commodity-exposed Australia was heading for a weekly drubbing of 2.7%, the news wire said.

E-Mini futures for the S&P 500 did rise 0.24%, but were still off 2.2% on the week so far. Overnight, the Dow rose 0.39%, while the S&P 500 0.25% and the Nasdaq dropped 0.09%.

On the outlook for the KLCI, Kenanga Research said chart-wise the index is seen to be consolidating at its key support level of 1, 600.

“However, the index remains traded below all key-SMAs, which suggest that the overall bearish trend remains, ” it said.

Kenanga Research said as such, it expects the index to continue its downward movement and further test the key support level at 1, 570 (S1) and 1, 550 (S2). Conversely, overhead resistance levels can be seen at 1, 630 (R1) and 1, 650 (R2).

Nestle fell 70 sen to RM147 with 100 shares done while F&N was down 28 sen to RM34.20 and BAT 14 sen lower at RM22.50.

As for plantations, Genting Plantation fell 39 sen to RM9.59 with 100 shares done, KL Kepong 34 sen to RM23.56 and PPB Group 10 sen to RM18.58.

Petroas Dagangan lost 20 sen to RM22.64, PJ Bumi nine sen to 20 sen anf MISC six sen to RM7.12.

Among the gainers were Rapid Synergy, up nine sen to RM5.52, SOP six sen to RM2.20, Scienex five sen to RM8.35.

Other gainers were Success Trasformer, Takaful, Petronas Gas and MSCM Holdings.


Markets , trade conflict

   

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