KLCI inches higher but caution prevails after heavy selling

  • Markets
  • Wednesday, 04 Sep 2019

Market open

KUALA LUMPUR: Blue chips eked out slight gains early Wednesday after the selloff the previous day but investors would remain cautious due to the continuous attrition with the market moving one step forward and retreating two steps.

At 9.23am, the FBM KLCI was up 3.34 points or 0.21% to 1,594.86 after falling 20 points on Tuesday. Turnover was 284.91 million shares valued at RM88.71mil. There were 157 gainers, 133 losers and 200 counters unchanged.

Asian stocks dipped after poor US economic data stoked global recession fears and further soured investor sentiment already hurt by heightened trade war concerns, Reuters reported.

The US manufacturing sector contracted in August for the first time since 2016 amid worries about a weakening global economy and rising trade tensions between China and the United States, the Institute for Supply Management's (ISM) report on Tuesday showed.

MSCI's broadest index of Asia-Pacific shares outside Japan was a shade lower after losing 0.85% the previous day. Australian stocks lost 0.8% and Japan's Nikkei fell 0.3%.

Alliance DBS Research has reduced its target for the KLCI to 1,610, pegged to an unchanged 16 times CY20 earnings after incorporating its latest earnings revision.

In its strategy report issued on Wednesday, its 2019/2020 KLCI earnings growth was at -5.5% and 6.4%, respectively.

“We believe economic outlook will remain uninspiring in the near term due to heightened uncertainties in the global and domestic environments, trade tensions and prolonged weakness in commodity related sectors, ” it said.

Allianz rose 20 sen to RM14.98 and Petronas Gas added 20 sen to RM15.74 with 100 shares done. KL Kepong and HLFG gained 20 sen each to RM23.80 and RM16.68.

BAT added 12 sen to RM19.60, Opcom 7.5 sen to 62 sen and Takaful seven sen to RM5.72.

MISC and QL Resources inched up six sen each to RM7.21 and RM6.95 with 100 shares done.

Priceworth Industries added one sen to six sen with 24.27 million shares done after its agreed to sell a 30% stake to Yayasan Sabah in return for a supply of logs.

MPI fell 22 sen to RM8.46, Scientex nine sen to RM8.21, Latitude Tree and Hengyuan six sen each to RM3.16 and RM4.39.

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