Market Close KLCI posts weekly loss, remains flattish on cautious investor sentiment

Market Close KLCI posts weekly loss, remains flattish on cautious investor sentiment
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Friday, 05 July 2013 17:13

KUALA LUMPUR (July 5): The FBM KLCI posted a marginal weekly loss at the close on Friday, while remaining relatively flattish on cautious investor sentiment following less than encouraging second quarter export data.

At 5pm, the FBM KLCI closed 0.93 points higher at 1,772.27, falling a marginal 1.27 points week-on-week. The index had earlier risen to its intra-day high of 1,778.56.

Gainers led losers by 544 to 215, while 273 counters traded unchanged. Volume was 1.63 billion shares valued at RM1.96 billion.

The top gainers included Hong Leong Capital, Puncak Niaga, Eastland Equity, Favelle Favco, Petronas Dagangan, Petronas Gas, AFG, Cahya Mata Sarawak, Kossan and Pharmaniaga.

Etitech was the most actively traded counter with 80.09 million shares done. The stock added half a sen to 5 sen.

The other actives included Luster, TA, JAKS Resources, Puncak Niaga, CLIQ, Flonic, Tanjung Offshore and Salcon.

The losers included Tasek, BAT, Carlsberg, Metal Reclamation, GAB, Tahps, KPJ, Shell, MBM Resources and Maybank.

MIDF Research head of equity Syed Muhammed Syed Kifni told theedgemalaysia.com that the lackluster KLCI performance today could be attributable to the nation’s external trade numbers which came in below expectations.

Syed Muhammed said the trade numbers for May were released midday Friday with exports showing a larger decline of -5.8% year-on-year (y-o-y) against the consensus -3.0% y-o-y.

Likewise, imports fell -2.3% y-o-y vis-à-vis the estimated rise of +2.9% y-o-y, he said.

As for next week, Syed Muhammed said investors’ attention will be focused on two figures, namely IPI and OPR.

He said the IPI May number was scheduled to be released on Thursday and the consensus is expecting a modest growth of +2.0% y-o-y.

“We are sanguine but nonetheless a disappointing outcome may bring shivers to the market as it may signal slowing of demand growth on the home front. Furthermore, the MPC meeting also scheduled for the same day next week is expected to retain the OPR at current 3.00%. The current level is deemed appropriate given the prevailing outlook for inflation and growth.

“We do not expect major surprises on the economic front next week. Hence we reckon the market may continue to range bound between its immediate support and resistance levels of 1,760 and 1,790 points respectively,” he said.

Meanwhile, Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the Malaysian local equity market was relatively flat on Friday in line with Asian region as investors were cautious on the key events tonight (the USA non-farm payrolls report) which will set direction for magnitude and Fed reduced stimulus timeframe.

“The market also seems wary of the unrest in Egypt that threatens to further destabilise the Middle East region, which now already push the light crude oil price back above USD100 (first time since April 2012).

“We however believe the flattish session is temporary and the market should be back in force after sometime,” he said.

Meanwhile, European shares and bonds were little changed on Friday in cautious trade before U.S. jobs data, holding onto gains posted the previous day after Europe's two biggest central banks said interest rates would stay low, according to Reuters.
The dollar rose and traders said it could test a near three-year high against a basket of currencies that it hit in May if the U.S. payrolls data, due out at 1230 GMT, came out strong, it said