Market Close KLCI makes 11-hour gains, ends 1.25% higher

Market Close KLCI makes 11-hour gains, ends 1.25% higher
Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Friday, 28 June 2013 17:35

KUALA LUMPUR (June 28): The FBM KLCI made eleventh-hour gains before close of trading today due to last minute buying, which boosted the index by about 6 points or 0.4% during the last 10 minutes of the last trading day for the quarter.

At 5 pm, the benchmark index was up by 21.97 points or 1.25% to settle at 1773.54 points.

According to Pong Teng Siew, head of research at Interpacific Securities, local and foreign funds as well as unit trusts would have engaged in window-dressing activities as the first half of the year draws to a close today.

“However, the conditions that we have seen that contributed to market volatility recently have eased now, so the positive market trend has also increased investors’ confidence,” he said.

“Following the bullish recovery of the local stocks, we expect the KLCI to stage a further rebound with 1780 as the immediate target driven by local net foreign inflow, easing credit concerns in China, slower-than-estimated US economic growth and hopes that the Federal Reserve may hold back from reducing stimulus,” said Dr Nazri Khan, head of retail research at Affin Investment Bank.

“We believe the latest global equity strength fuelled by delayed counter-stimulus measures should spillover into Bursa to support rebound for next week’s session,” he added.

Across Bursa Malaysia, 1.5 billion shares worth some RM2.7 billion swapped hands. There were 508 gainers versus 253 decliners.

The top gainer was PETRONAS GAS BHD [] while Hong Leong Capital Bhd led the decliners. The most active counter was LUSTER INDUSTRIES BHD [].

According to Reuters, world shares touched their highest level in a week on Friday and bonds and oil rose after U.S. central bankers moved to ease fears of an early withdrawal of monetary stimulus.

Traders said the day's market activity was likely to be dominated by last-minute position adjustment, at the end of what has been a volatile period for many investors as the era of easy money draws to an end.

Upbeat data from Japan, which helped Tokyo's Nikkei index end the first half of the year up 31.5%, and improving credit conditions in China added to the better investor sentiment.

Hong Kong’s Hang Seng ended 1.8% higher, while the Shanghai Composite Index also ended 1.5% up.

Japan’s Nikkei 225 closed 3.5% higher today, while Australia’s S&P ASX 200 dipped 0.2%, South Korea’s Kospi also gained 1.6% and Singapore’s Straits Times Index rose 1%.

European bonds shared in the more positive tone, with yields falling on core German debt and on riskier Spanish and Italian paper.