US-China tensions weigh on Bursa as KLCI faces selling pressure

  • Markets
  • Friday, 29 May 2020

KUALA LUMPUR: Blue chips fell in early Friday trade as US-China tensions saw investors backing off and the FBM KLCI faced selling pressure.

At 9.23am, the KLCI was down 6.86 points or 0.47% to 1,450.64. Turnover was one billion shares valued at RM609.45mil. There were 253 gainers, 308 losers and 264 counters unchanged.

Bloomberg reported the S&P 500 futures fell 0.7% as of 10:05 a.m. in Tokyo. The S&P 500 fell 0.2% Thursday. Japan’s Topix index fell 0.6%, South Korea’s Kospi declined 0.5% and Australia’s S&P/ASX 200 Index slid 1.2%.

Rakuten Trade said Wall Street saw bouts of late selling on fears of Trump’s move against social media companies plus the worsening US-China ties.

The Dow Jones Industrial Average fell 147.63 points, or 0.58%, to 25,400.64. The S&P 500 lost 6.4 points, or 0.21%, to 3,029.73 and the Nasdaq Composite dropped 43.37 points, or 0.46%, to 9,368.99.

"The late selling depicts the fluidity of investors sentiments thus we may see regional markets to experience some downside today.

"As for the local bourse, we reckon the KLCI to face with some selling pressure with the index to test the immediate support of 1,450," it said.

At Bursa on Thursday, local retail investors were net buyers at RM151mil and local institutions at RM76.1mil while foreign funds continued to be net sellers at RM227.1mil.

Nestle fell RM1.50 to RM138.10, Heineken 40 sen to RM22.20 and F&N 32 sen to RM31.48 in thin trade.

Oil prices edged lower on Friday after US inventory data showed lacklustre fuel demand in the world's largest oil consumer, Reuters reported.

Reuters reported Brent crude slipped 36 cents, or 1%, to $34.93 a barrel by 0106 GMT and U.S. West Texas Intermediate crude was at $33.20 a barrel, down 51 cents, or 1.5%. Still, both contracts are set for a fifth weekly gain, helped by production cuts and optimism about demand recovery in other countries.

Petronas Dagangan fell 54 sen to RM20.92 and Petronas Gas 30 sen to RM17.

KL Kepong lost 76 sen to RM21.24 with 100 shares done while Genting Plantations was down 44 sen to RM9.88.

Public Bank lost 14 sen to RM15.04 while Ornapaper skidded 14 sen also to RM1.05.

Hartalega lost 12 sen to RM11.02 but Rubberex jumped 41 sen to RM3.47 and Top Glove 20 sen to RM13.30, Comfort Gloves gained six sen to RM3.51 and Adventa 15 sen to RM1.51.

Mega First strong earnings saw it climb 32 sen to RM6.37 while Poweroot added 24 sen to RM2.48 and KPower 20 sen to RM2.10.

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