KLCI dips in morning trade, bucking regional gains

KLCI dips in morning trade, bucking regional gains
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KUALA LUMPUR (May 6): The FBM KLCI fell by 0.32% in early morning trade, bucking regional gains.

At 9.06am, the benchmark index had fallen 4.99 points to 1,570.68 points, weighed down by concerns over the widened movement control order (MCO).

Dataprep Holdings Bhd was the top gainer so far, up 14 sen to RM2.09, with 6.88 million shares traded.

Meanwhile, the top loser was Transocean Holdings Bhd, shedding 35 sen to RM6.30 amid a trading volume of 53,700 shares.

The most active stock on the local bourse so far was Tanco Holdings Bhd, which had risen one sen to RM1, with 37.15 million shares changing hands.

“Following the recent lacklustre performance and the announcement of the MCO, the KLCI could remain pressured and retest the support of 1,560 points,” said JF Apex in a note this morning.

Bloomberg reported that Asian stocks rose in early trade this morning after technology shares weighed on US markets, offsetting optimism over solid corporate earnings and economic reports. Bonds pared overnight gains.

“Shares opened higher in Australia and Japan, where trading resumed after holidays. Futures pointed higher in Hong Kong and US contracts were little changed after the tech-heavy Nasdaq 100 ended in the red, while the S&P 500 notched a small gain. Boston Federal Reserve (Fed) president Eric Rosengren suggested that the US mortgage market no longer needs as much support, advancing the debate on when the central bank might start tapering its monthly bond purchases.

“The benchmark 10-year Treasury yield edged higher in Asia’s morning. The US government said it will sell US$126 billion (about RM519.06 billion) of long-dated bonds in next week’s refunding, unchanged from last quarter, which suggests its financing needs may have peaked,” it said.