Market Close KLCI volatile, falls 0.08% on US, Japan policy concerns

Market Close KLCI volatile, falls 0.08% on US, Japan policy concerns
Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Thursday, 15 August 2013 17:47

KUALA LUMPUR (August 15): The FBM KLCI saw choppy trades throughout the day before losing 1.52 points or 0.08% minutes before closing. At 5pm, the benchmark settled at 1,792.21 points.

Analysts said the KLCI had followed the regional trend as investors took positions for short-term play ahead of Malaysia's 2014 Budget announcement on October 25, 2013.

Interpacific Securities head of research Pong Teng Siew described the movement of the KLCI as “boring”. He however noted that stocks that were in play were more interesting to look at.

“There has been a lot of play with penny stocks today, with interest being seen in water stocks as well.

"Hartalega has generated interest since the weakness of the ringgit is beneficial for exporters and consumer stocks like Nestle, Carlsberg and Dutch Lady also gained today,” he said.

Global stock indices had taken the cue from US markets. Pong said this is in anticipation of the US Federal Reserve reducing its bond purchases.

“Most indices in the region ended lower. Foreign funds could be selling since the regional markets are down.

"But they may also be taking cues from the New York Stock Exchange which is in turn being affected by talk of the Fed easing stimulus measures,” he said.

In Malaysia, the KLCI was dragged down by stocks like PETRONAS GAS BHD [], BRITISH AMERICAN TOBACCO (M) [] Bhd and Genting (M) Bhd. HONG LEONG FINANCIAL GROUP BHD [], Felda Global Ventures and IHH Healthcare Bhd provided some boost in the morning trading session.

Across Bursa Malaysia, 2.42 billion shares, worth RM2.07 billion were traded. There were 418 gainers versus 381 decliners.

The top gainer was TAHPS GROUP BHD [] while the leading decliner was PETRONAS DAGANGAN BHD []. The most-active counter was Sona Petroleum Bhd warrants.

Across the region, Japan’s Nikkei 225 shed 2.12%, Australia’s S&P ASX 200 was down 0.1%, South Korea’s Kospi was 0.57% higher, while Singapore’s Straits Times closed 0.85% lower.

In China, the Shanghai Composite fell 0.87% while Hong Kong’s Hang Seng was 0.01% lower.

According to Reuters, Asian stocks fell today and the dollar slipped as uncertainty over when the U.S. Federal Reserve will start to pare back its stimulus offset a brighter economic picture in Europe.

Japanese shares led losses, after cabinet ministers shot down a media report earlier this week that the government is considering cuts in corporate taxes.