KLCI drifts lower ahead of 4Q GDP data, CNY holiday

KLCI drifts lower ahead of 4Q GDP data, CNY holiday
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KUALA LUMPUR (Feb 11): The main index at Bursa Malaysia drifted lower in early trade Thursday ahead of the fourth quarter of 2020 gross domestic product (GDP) data release by Bank Negara Malaysia later in the morning, as well as the impending Lunar New Year holiday, against the backdrop of steady US equity futures.

At 9.05am, the FBM KLCI was down 1.13 points to 1,595.72.

The early decliners included Nestle (Malaysia) Bhd, KESM Industries Bhd, Heineken Malaysia Bhd, Press Metal Aluminium Holdings Bhd, Petronas Chemicals Group Bhd, PPB Group Bhd, RHB Bank Bhd and Ibraco Bhd.

Bloomberg said US equity futures were steady Thursday as investors assessed the implications of weaker than expected American inflation data for the so-called reflation trade that bets on a recovery from the pandemic.

JF Apex Research said US markets were flat overnight with the Dow edging to a record high while the S&P and Nasdaq slipped following the US Federal Reserve chairman's comments on employment.

It said that earlier, European stocks declined amid corporate earnings and Germany extending its lockdown period.

“On the local market, the FBM KLCI rose 10.72 points or 0.68% to 1,596.85 points.

“Following the recent bullish momentum, the FBM KLCI could extend its rebound and climb towards the resistance of 1,615 points,” it said.