FBM KLCI rally fizzles as China stocks drag on sentiment

KUALA LUMPUR: Malaysia’s benchmark FBM KLCI failed to keep a rally going as a sharp slide in China’s stock market cast a shadow across regional markets.

At 12.30pm, the key index was down 1.87 points to 1,539.54, defying expectations of a sustained rally amid record-breaking performances on Wall Street.

The broader market was slightly weaker, underpinned by 496 decliners compared to 460 gainers and 463 counters unchanged, while share turnover was 2.6 billion valued at RM1.3bil.

Global stock markets were expected to wrap the week on a high note following the US Federal Reserve’s guidance for lower lending rates later this year and a surprise rate cut by the Swiss National Bank, which analysts say was a prelude to global monetary easing.

However, China stocks were awash in red with the Shanghai Composite index registering a 1.4% decline to 3,033 while the blue-chip CSI300 dropped 1.5% to 3,627.

Hong Kong’s stocks were battered with the benchmark Hang Seng diving 3% to 16,350

Japan’s Nikkei, however, was the rare bright spot, rising 0.2% to a fresh record of 40,910.

Back home, Sunway Construction saw increased investor attention as analysts upgraded their forecasts on the construction firm following the announcement of a RM747.8mil data-centre deal in after-trading hours yesterday.

The share entered the lunch break 23 sen higher at RM2.96 a share, marking a new historical high.

Meanwhile, fertility care specialist Alpha IVF opened to a lukewarm welcome upon its debut on the ACE Market today, resting flat against its initial public offering price of 32 sen a share. The counter, however, was the most actively traded, with 212.4 million shares crossing hands.

Other actives included Borneo Oil, unchanged at 0.5 sen apiece, while Pan Malaysia Holdings rose two sen to 21 sen a share.