FBM KLCI falls 21pts as red-hot US inflation hits markets

KUALA LUMPUR: The FBM KLCI was down more than 21 points by midday as an unexpected rise in US inflation figures hit investor sentiment.

Stock prices sank regionally as an 8.6% rise in the US consumer price index in May sparked concerns the US Federal Reserve will implement tightening measures even more aggressive, putting more pressure on the global economy.

At 12:30 pm, the key index was down 21.69 points at 1,472.26, an 18-month low.

Twenty-eight of the 30 constituent shares of the FBM KLCI were in the red. In the broader market, there were 960 decliners compared to just 112 winners.

Trading volume was 1.93 billion shares valued at RM1.04bil

In the financial services sector, Maybank fell eight sen to RM8.67, Public Bank fell seven sen to RM4.46, CIMB fell six sen to RM4.98 and Hong Leong Bank lost 20 sen to RM20.60.

metal press fell 13 sen to RM4.86, Petronas Chemicals fell 9 sen to RM9.61 and IHH fell 20 sen to RM6.25.

In plantations, Kuala Lumpur Kepong dropped 44 sen to RM24.54, Sime Darby Plantation it lost six sen to RM4.58 while IOI raised one sen to RM4.10.

Tech counters also slammed with MPI dropping RM1.66 to RM30.28 and Vitrox dropping 37 sen to RM7.26.

The main assets were Fintec with a drop of 0.5 sen to one sen, BCM Alliance flat at 2.5 sen and Sapura Energy slider from 0.5 sin to 4.5 sin.

Meanwhile, it was also a bloodbath in the main Asian markets. Japan’s Nikkei slumped 2.75%, South Korea’s slumped 3.2% and China’s composite index fell 1.1%.

Hong Kong’s Hang Seng fell 2.8% while Australia’s ASX200 slipped 1.25%.

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