FBM KLCI declined – Analysts surprised by selling

FBM KLCI closed lower in tandem with the regional sell- off. The benchmark index lost 0.88% or 14.48 pts to close at 1,622.07.

All of the sectors were negative with construction (-2.2%), telecommunications (-1.8%), and energy (-1.4%) leading the losses.

Market breadth was negative with 1044 losers against 285 gainers. Total volume stood at 5.34bn shares valued at RM3.42bn.

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FBM KLCI declined

“We were surprised by the selling possibly due to the heightening uncertainty in the US politics.

“Nonetheless, we see some bargain hunting activities today thus expect the index to hover within the 1,625-1,635 range,” Rakuten Trade says.

Wall Street rebounded following sharp sell-down in previous sessions as traders also weighed on Biden’s stepping down from the presidential election. Meanwhile, focus will also be on the personal consumption expenditure (PCE) index which is due on 26th July.

As such, the DJIA gained 128 points while the Nasdaq jumped by 281 points as the US 10-year yield edged higher at 4.254%. Over in Hong Kong, the HSI added almost 220 points as sentiment recovered after China cut its rates by 10bps to spur economic activities.