Weak Wall Street to weigh on KLCI
Published on 03 Oct 2019. | Source: thestar.com.my
KUALA LUMPUR: The FBM KLCI is likely to extend its decline on Thursday after hitting the lowest since June 2012 the previous day following the overnight slump on Wall Street.
CGS-CIMB Retail Research said the KLCI fell 14.54 points on Wednesday on the back of the weak US manufacturing activity sparking fears of a global economic recession.
“Yesterday’s close was the weakest close for the local benchmark since June 15,2012. The close penetrated below the two-month trading range between 1,580 and 1,620. Coupled with the overnight fall on Wall Street, the local bourse is most likely to record new lows today, ” it said in its technical outlook.
CGS-CIMB Retail Research also pointed out October has historically been the most volatile month for stock markets globally and Malaysia is not likely to be spared.
“A strong close below the year low of 1,572 would send the index lower towards 1,540 next.
“Closing back above 1,615 (on a monthly close basis) would offer temporary relief for the market. The long-term trend for KLCI is still down as indicated by the lower lows and lower highs sequence since the April 2018 high of 1,896, ” it said.
Stay tuned for a new offer coming to you soon.
Directory Advertisement:
