FBM KLCI rebound falters

REVIEW: Market sentiment took a further downturn following Thursday’s evening announcement that the movement control order would be extended until May 12, with the door left open to yet another extension.

In a note published yesterday, UOB Kay Hian cautioned “grave downsides” to the economy and corporate earnings growth, and told investors to expect a steep downgrade of its FBM KLCI target.

Earlier in the week US crude took a historic plunge into sub-zero prices, dispersing the haze of optimism around the economic outlook and served as a startling reminder of the impact of the nationwide shutdowns on the global economy.