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Bursa tumbles on US market decline as Fed decision looms

KUALA LUMPUR: The domestic market remains trading in consolidation mode pending the release of corporate earnings in the coming weeks.

Also in sharp focus is the US Federal Reserve’s decision following the end of its open market committee meeting on Wednesday.

US markets snapped a six-day rally overnight as investors turn anxious leading up to the central bank decision where lending rates are expected to be raised by a quarter-point.

At the opening bell, the FBM KLCI tumbled 5.6 points to 1,493.79 as investors took the US market selldown as a signal to take profit.

While this took the benchmark index to its lowest in three-weeks, there are expectations of positive catalysts following this period of uncertainty.

According to TA Securities Research, stocks should extend sideways trading pending domestic catalysts to lift stocks from the current consolidation phase.

“Immediate index chart support stays at 1,460 and 1,450, with stronger supports at 1,420 and 1,400. Significant overhead resistance remains at 1,512, with the August high near 1,528 as stronger resistance, followed by 1,550 and 1,570 as tougher upside hurdles,” said the research firm.

On Bursa Malaysia, Nestle shaved 60 sen to RM135.40, PETRONAS Gas fell 36 sen to RM17.24 and Carlsberg dipped 34 sen to RM23.34.

Hong Leong Bank dropped 32 sen to RM20.88, PETRONAS Dagangan slid 30 sen to RM22.58 and MPI lost 30 sen to RM33.60.

Vestland jumped five sne to 38 sen on the ACE Market debut, and topped the list as the most actively traded counter.

Also heavily traded, Hong Seng slipped 0.5 sen to 20 sen and Borneo Oil rose 0.5 sen to 2.5 sen.

Source: Bursa tumbles on US market decline as Fed decision looms-The Star

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