Market Open KLCI snaps losing streak, edges up in early trade

Market Open KLCI snaps losing streak, edges up in early trade
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Tuesday, 04 June 2013 09:15


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KUALA LUMPUR (June 4): The FBM KLCI snapped its three-day losing streak and rose in early trade on Tuesday, in line with the recovery at most regional markets.

At 9.10am, the FBM KLCI edged u0 1.53 points to 1,767.86.

Gainers led losers by 160 to 86, while 118 counters traded unchanged. Volume was 104.02 million shares valued at RM57.36 million.

The early gainers included Petronas Dagangan, BAT, Petronas Gas, Oriental, Hong Leong Bank, Hartalega, KLK and Sarawak Oil Palms.

BIMB Securities Research in a market preview Tuesday said volatility on Wall Street had definitely heightened as investors flocked back to equities hoping that the Feds will continue with its stimulus package.

The Dow Jones Industrial Average rebounded 138 points to 15,254 yesterday after a sharp decline last Friday, it said.

The research house said that in Europe, selling on equities persisted exacerbated from riots in Turkey.

“Meanwhile, the selldown on Asian stocks continued with most ended the day broadly lower as outflow of foreign funds may have started.

“Previous star performers within the SEA region had all experienced sharp selldown for the past month after touching their respective all time highs. The Philippines declined by almost 9% from its high while both Indonesia (-5.3%) and Thailand (-6.7%) were not spared either,” it said.

BIMB Securities said locally, the FBM KLCI continued with its correction as it lost 2.89 points to 1,766.33.

“We noticed there have been net outflows from the foreign funds of late but impact was rather muted as support from the local funds has been quite apparent.

“We expect the index to remain flat today and expect a rebound anytime soon with 1,770 as the immediate resistance,” it said.

Meanwhile, Asian shares recovered from their lowest in about six months on Tuesday as weak new U.S. manufacturing data eased worries about the Federal Reserve's stimulus programme, although investors were cautious before a more important jobs report later in the week, according to Reuters.

U.S. stocks rose but the dollar fell and U.S. Treasury prices were mixed on Monday in a volatile session after data from the Institute for Supply Management showed an unexpected contraction in the U.S. manufacturing sector in May, shrinking for the first time in six months, it said.