KLCI reverses loss on bargain hunting

KUALA LUMPUR (Feb 25): The FBM KLCI recovered in early trade and rose on bargain hunting as key blue chips advanced, despite the selloff seen at regional markets.

The recovery is also seen as investors appeared favourable to the appointment of Tun Dr Mahathir Mohamad as interim Prime Minister.

At 9.15am, the FBM KLCI rose 5.44 points to 1,495.50. It had earlier fallen to low of 1,481.46.

The top gainers included Public Bank Bhd, Fraser & Neave Holdings Bhd, Hartalega Holdings Bhd, Malayan Cement Bhd, IGB Bhd, Westports Holdings Bhd, Tenaga Nasional Bhd, Malaysia Airports Holdings Bhd and Apex Healthcare Bhd.

Bloombergsaid a sell-off that wiped out global stock gains for the year continued in Asia Tuesday amid concerns authorities around the world are struggling to keep the coronavirus from spreading. Havens including Treasuries and the yen held onto losses.

Japan opened lower after a holiday, while Australia and South Korea also fell. Futures in Hong Kong pointed to a weaker start. U.S. futures edged higher after U.S. stock benchmarks slumped more than 3%, with the S&P 500 Index dropping the most since February 2018. European stocks also tumbled, it said.

JF Apex Securities Research said US markets plunged over 3% overnight following fears of prolonged global economic slowdown as more cases of the coronavirus are reported outside China.

It said that similarly, European stocks tumbled, dragged by airlines and travel companies on concerns that the virus is spreading in Italy.

“On the local market, the FBM KLCI plunged 41.21 points to 1489.99 points.

“Following the bearish sentiment caused by the pandemic and the political uncertainty locally, the FBM KLCI remain pressured with support at 1450 points,” it said.