KLCI slips in line with region after overnight sell-off on Wall Street

KLCI slips in line with region after overnight sell-off on Wall Street
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KUALA LUMPUR (Jan 5): The main index of Bursa Malaysia slipped in line with its regional peers following an overnight sell-off on Wall Street.

At 9.05am, the FBM KLCI had dipped 11.73 points to 1,600.84.

The early decliners included Kuala Lumpur Kepong Bhd (KLK), Yinson Holdings Bhd, Carlsberg Brewery Malaysia Bhd, Allianz Malaysia Bhd, Euro Holdings Bhd, Hengyuan Refining Company Bhd, Petron Malaysia Refining & Marketing Bhd and RCE Capital Bhd.

Bloomberg said Asian stocks slipped amid concern that a surge in global coronavirus cases could crimp the economic recovery, with traders also bracing for key run-off elections in the US.

Gold maintained its rally, it said.

Rakuten Trade said surging global coronavirus cases plus the run-off election in Georgia had traders pressing the panic button as Wall Street experienced heavy selldown on the first trading day of 2021.

It said the Dow Jones Industrial Average, which dipped below the 30,000 mark at one point, recovered in the late session to close around 30,220 or 380 points lower.

“In view of this, we reckon regional markets to be mixed today.

“On the local front, we expect the KLCI to remain volatile, impacted by high volatility among glove counters.

“Therefore, the benchmark index will possibly hover within the 1,590-1,600 range today, with 1,590 being the immediate support level.

“On a brighter note, the ringgit is now at a 52-week high against the USD (US dollar), now hovering at RM4/US$1. We expect the ringgit to continue strengthening to around the 3.80 level this year,” it said.