KLCI falls 1.1% as global markets dip



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KUALA LUMPUR (Dec 15): The FBM KLCI fell 1.1% in early trade on Monday as global markets slipped and crude oil prices fell to more than five-year lows.

At 9.02am, the FBM KLCI lost 19.05 points to 1,713.94.

The top losers included Petronas Dagangan Bhd, Kuala Lumpur Kepong Bhd, British American Tobacco (M) Bhd, Aeon Credit Services (M) Bhd, PPB Group Bhd, Hong Leong Bank Bhd, Petronas Gas Bhd and Malaysia Airports Holdings Bhd.

New Ace Market listing Kronologi Asia Bhd was among teh smost actively traded stocks.

The stock rose 8.62% or 2.5 sen to 31.5 sen with 4.1 million shares traded.

Regionally, oil prices fell more than two percent to 5 1/2-year lows early on Monday on concerns about supply glut and slower global growth, feeding fears for energy and commodities producers and exporters, according to Reuters.

Investors are nervous after U.S. shares posted their biggest weekly fall in 2 1/2-years last week on losses led by energy sector and as they expect the U.S. Federal Reserve to hint this week it is getting closer to raising interest rates, it said.

BIMB Securities Research in a market preview Monday said Asian markets experienced mixed fortunes last Friday after two contrasting pieces of economic data emerged from China.

It said China's industrial output grew by a less-thanexpected 7.2% in November from a year ago, but retail sales rose 11.7%, beating forecasts.

The research house said that locally, the FBM KLCI closed down nearly 12 points as oil and gas stocks especially SapuraKencana Petroleum continued to be hammered by fund selling and the 30-stock index was down nearly 88 points since end-November.

“At the close, the FBM KLCI was down 11.58 points or 0.66% to 1,732.99.

“We expect the local market to trade sideways with the index hovering in the region of 1,725-40,” it said.