KUALA LUMPUR, 14 JULY: The FBM KLCI fell 7.24 points, or 0.48 percent, today, tracking Asian shares’ performance as investors worry about an inflation increase in the US market. Furthermore, investors have mostly remained on the sidelines due to concerns about a return of new Covid-19 instances in the region.
Malaysia’s benchmark index ended the day at 1,512.32, close to the year’s low of 1,508.71 set on July 8.
Overnight, the US announced that its consumer price index increased 0.9 percent in June and 5.4 percent from the same month the previous year, beating all forecasts and demonstrating that higher costs associated with the reopening of the American economy are continuing to fuel inflationary pressures.
Asian stocks dipped on Wednesday, according to Reuters, after data indicating the largest increase in US inflation in 13 years fueled speculation that the Federal Reserve would leave pandemic-era stimulus sooner than originally believed.
In Asia, the Nikkei 225 index in Japan fell 0.2 percent, while the Kospi in Seoul fell 0.22 percent. The Hang Seng Index in Hong Kong dropped 0.63 percent, while the Shanghai Stock Exchange Composite Index sank 1.07 percent.
On Tuesday, US markets fell after government statistics indicated that inflation may be picking up steam, overshadowing significant bank results reports.
Rakuten Trade Sdn Bhd anticipates certain sellers to emerge on the domestic market.
It claimed in a note that stronger-than-expected inflation figures frightened Wall Street, prompting traders to sell.
“Though many saw it as a one-time hiccup, feelings are becoming increasingly uneasy following a recent record-breaking run. As a result, we expect regional markets to follow suit, with mixed activity today “It was also added.
The market breadth was mixed, with 544 losses outnumbering 411 losers, and 463 stocks remaining unchanged.
The amount of trade today was 4.38 billion shares worth RM2.97 billion.
For the second day in a row, Pasukhas Group Bhd topped the active list on the local exchange, with 241.97 million shares traded. At 23 sen, the stock was down 10 sen, or 30.3 percent.
Serba Dinamik Holdings Bhd, Lambo Group Bhd, Sedania Innovator Bhd, Pelikan International Corp Bhd, Kanger International Bhd, Kumpulan Jetson Bhd, Kejuruteraan Asastera Bhd, and AT Systematization Bhd were among the other companies engaged.
Malaysian Pacific Industries Bhd, Vitrox Corp Bhd, D&O Green Technologies Bhd, BLD Plantation Bhd, Greatech Technology Bhd, OCB Bhd, Kobay Technology Bhd, KESM Industries Bhd, and Southern Acids (M) Bhd were among the top gainers in terms of value.
Nestle (M) Bhd, Genetec Technology Bhd, Hong Leong Financial Group Bhd, Hong Leong Bank Bhd, Panasonic Manufacturing Malaysia Bhd, Computer Forms (M) Bhd, Kumpulan H & L High-Tech Bhd, Petronas Dagangan Bhd, British American Tobacco (Malaysia) Bhd, and Widetech (M) Bhd were among the worst-performing companies./n
