KLCI bucks regional trend, drops 0.44% in early trade

KUALA LUMPUR (Jan 16): The FBM KLCI dropped 0.44% in early trade Thursday, bucking the trend at regional markets, dragged by select index-linked blue chips.

At 9.05am, the FBM KLCI lost 6.92 points to 1,578.22.

The early losers included Kuala Lumpur Kepong Bhd, Malaysian Pacific Industries Bhd, PPB Group Bhd, Syarikat Takaful Malaysia Keluarga Bhd, Hong Leong Financial Group Bhd, Nestle (M) Bhd, British American Tobacco (M) Bhd, Tenaga Nasional Bhd and Heineken Malaysia Bhd.

Reuterssaid world stocks inched to a record high on Thursday after the United States and China signed a deal to defuse their 18-month trade war, which has weighed on global economic growth and hampered investments.

MSCI's broadest index of world stocks firmed 0.04% in early trade after closing at record level on Wednesday while its index on Asia-Pacific shares outside Japan rose 0.10%, it said.

JF Apex Securities Research said US markets rose overnight after the US and China signed the phase one trade agreement.

It said that earlier, European stocks ended mixed prior to the signing of the trade agreement as well as weak German GDP and UK inflation.

“On the local market, the FBM KLCI reversed intraday losses to close 4.54 points higher at 1585.14 points.

“Following the positive performance in Wall Street, the FBM KLCI could extend its rebound towards the resistance of 1615 points,’ it said.