KLCI snaps rally as global markets face recession

KUALA LUMPUR: The FBM KLCI started Monday on a lighter footing as it snapped four-days of gains following the IMF's declaration that the coronavirus pandemic had triggered a global recession.

At noon, the Malaysian benchmark index dropped 17.33 points to 1,325.76, as bullish sentiment over government stimulus measures gave way to caution.

In its technical outlook, Kenanga Research said it expects the market to continue the technical rebound from the previous session given its oversold position.

"On the chart, we have upped our support levels to 1,310 (S1) and 1,240 (S2). Conversely, the resistance levels are now set at 1,360 (R1) and 1,400 (R2)," it said.

Trading value on the stock exchange tapered somewhat to RM918.96mil on volume of 1.67 billion shares. There were 523 declining stocks to 230 gainers and 237 unchanged.

Across global markets, cash was taken out of equities as investors settled into the reality of an economic slump over the coming months.

Japan's Nikkei fell 2.85%, China's composite index sank 1.6% and South Korea's Kospi slid 1%.

Hong Leong Bank led the market lower with a 62 sen decline to RM13.58. Public Bank shed 10 sen to RM15.80 while Maybank dipped five sen to RM7.32 and CIMB dropped eight sen to RM3.49.

Consumer stocks also fell with Carlsberg sliding RM1.02 to RN24.60, F&N slipping 94 sen to RM29.14 and Dutch Lady falling 92 sen to RM41.96.

Most actively traded stocks included Mlabs unchanged at 1.5 sen, VC up two sen to five sen and Careplus rising 4.5 sen to 27 sen. - Star