CHINA’S ‘WE WILL NEVER SURRENDER’ RESPONSE TO TRADE BULLY TRUMP SENDS BURSA CRASHING IN TANDEM WITH REELING GLOBAL STOCK MARKETS

KUALA LUMPUR: Bursa Malaysia joined key Asian markets to close in the red on Monday, registering losses of between 0.4% and 1.65% after China said it will never surrender to external pressure in the escalating US-China trade war.

The FBM KLCI fell past the key 1,600 level at 2.56pm and several times after that before closing above the level on some local fund support. The next support level for the index is 1,580, analysts said.

At 5pm, the KLCI was down 9.18 points or 0.57% to 1,601.09. Turnover was 2.48 billion shares valued at RM1.64bil. Decliners hammered gainers nearly six to one or 815 losers to 140 gainers while 260 counters were unchanged.

Reuters reported global equities fell on Monday after their worst week of 2019, as hopes of an imminent US-China trade deal were crushed and neither side showed a willingness to budge, raising fears of a fresh round of tit-for-tat tariffs.

The US and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any “bitter fruit” that harmed its interests.

Among the key Asian markets, Japan’s Nikkei 225 fell 0.72%, South Korea’s Kospi 1.38% lower, China’s Shanghai COmposite 1.21% and Singapore’s STI 1.2%. Hong Kong was closed.

At Bursa, Digi fell 16 sen to RM4.53 and erased 2.16 point, Axiata lost nine sen to RM4.30 and erased 1.42 points while Maxis was flat at RM5.36.

Genting lost 16 sen to RM6.60 and wiped out over one point, GentingM eight sen to RM3.10, Press Metal fell 16 sen to RM4.30 while Tenaga Nasional was down six sen to RMRM11.74. Sime Darby was down four sen to RM2.16.

Crude palm oil fell RM4 to RM1,979. Sime Plantation lost four sen to RM4.91,  KL Kepong six sen to RM24.44 but PPB Group and IOI Corp rose two sen each to RM18.62 and RM4.26.

As for consumers, Heineken fell 66 sen to RM23.72, Nestle 30 sen to RM143.70 while BAT was down 22 sen to RM33.76.

Allianz lost 44 sen to RM13.16, Aeon Credit

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 36 sen lower at RM15.80 and LPI 22 sen to RM15.04.

MAHB was the top gainer, up 22 sen to RM7.37 and nudging the KLCI up 1.28 points. MIDF Research reiterated its Buy call on with a TP of RM8.90 per share as it is a proxy to Malaysia’s inbound/outbound travel industry.

US light crude oil jumped 86 cents to US$62.52 and Brent rallied US$1.18 to US$71.80 on tightening supplies. Petronas Dagangan rose six sen to RM24.30, Petronas Gas fell 12 sen to RM16.88 and Petronas Chemical five sen to RM8.84 while Dialog fell six sen to RM3.08.

Among the banks, Public Bank gained six sen to RM22.32. Maybank eked out one sen gain to RM8.98, CIMB was flat at RM5.12, AmBank shed one sen to RM4.39.RHB Bank shed two sen to RM5.72 while Hong Leong Bank fell 14 sen to RM19.36.

The ringgit weakened 0.14% against the US dollar to 4.1643, lost 0.25% to the pound sterling at 5.4204 and surrendered 0.22% to thge euro at 4.6791 but edged up 0.19% against the SIngapore dollar to 3.0451.

THE STAR

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