Bursa opens lower on poor global trade sentiment

Dimming prospects of any improvement in US-China trade ties send Bursa Malaysia to another weak opening. — Reuters pic
Dimming prospects of any improvement in US- trade ties send Bursa to another weak opening. — Reuters pic

, Nov 27 — Bursa Malaysia opened lower today despite the firmer close on , dampened by the continued US-China trade tension ahead of the Group of 20 summit beginning Friday.

At 9.02am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was 3.03 points weaker at 1,698.96 versus Monday’s close of 1,701.99 and after opening 3.27 points easier at 1,698.72.

On Monday, news reports said that US President Donald Trump was expected to move ahead with raising tariffs on US$200 billion (RM838.4 billion) worth of imports to 25 per cent from the current 10 per cent and reiterated his threat to slap tariffs on all remaining imports from China.

In an interview with the Wall Street Journal, Trump said it was ‘highly unlikely’ he would accept China’s request to hold off the increase, which is due to take effect on Jan 1, 2019.

Trump, who is due to meet Xi on the sidelines of the G20 summit in Buenos Aires, Argentina, this weekend, said that if negotiations were unsuccessful, he would also put tariffs on the rest of Chinese imports.

Meanwhile, on the local front, Maybank Investment Bank Bhd said the easing ringgit along with overnight recovery in both crude oil and global could potentially boost domestic sentiment today.

“Technically, we expect the FBM KLCI to range between 1,695 and 1,720 today. Downside supports are 1,680 and 1,658,” it said in a research note.

Market breadth was slightly positive with gainers outpacing losers 88 to 78, with 141 unchanged, 1606 untraded and 23 others were suspended.

Volume stood at 71.84 million units valued at RM63.45 million.

Among heavyweights, Maybank and CIMB was flat each at RM9.45 and RMRM5.68 respectively, eased two sen to RM24.92, TNB gained two sen to RM14.88 and Petronas Chemicals rose three sen to RM9.29.

Of actives, Genting eased 49 sen to RM3.11, Tatt Giap was flat at 24.5 sen while Nova MSC added half-a-sen to 14.5 sen.

The FBM Emas Index fell 17.58 points to 11,789.74, the FBMT 100 Index declined 18.43 points to 11,642.33, the FBM 70 shed 8.29 points to 13,861.12 but the FBM Ace Index was 12.14 points better at 4,986.83.

The FBM Emas Shariah Index decreased 1.53 points to 11,851.93.

Sectorwise, the Financial Services Index was 6.26 points higher at 17,363.74, the Industrial Products and Services Index improved 0.24 of-a-point to 172.88 and the Plantation Index was 6.40 points firmer at 7,083.97. — Bernama

Source: The Malay Mail Online

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