Midday Market KLCI rise on local fund buying

Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Friday, 06 December 2013 12:44
A + A - Reset
KUALA LUMPUR (Dec 6): The FBM KLCI erased losses for a 1.86-point or
0.1% gain. Remisiers and analysts believe local institional funds are supporting
the local market as foreign funds sell their shares here.
At 12.30pm, the KLCI settled at 1,826.72. This came on gains in stocks like
Malayan Banking Bhd and CIMB Group Holdings Bhd.
"Local institutional funds could be buying," a remisier told theedgemalaysia.com
over telephone today.
The KLCI's gains have not convinced analysts. Yesterday, the KLCI rose to a
record close at 1,824.86.
Today, BIMB Securities Sdn Bhd wrote in a note that "we are indeed perplexed
of such bullish trait as foreign funds continue to sell down on the local bourse
with another net outflow of RM191m yesterday.
"Already net foreign outflows for this week had amounted to RM441m and we
do not expect it to relent anytime soon. We remain wary of the local bourse as
recent strength may have rendered total returns for 2014 even lower".
Across Bursa Malaysia, some 476 million shares worth RM578 million changed
hands. There were 251 gainers versus 318 decliners.
The top gainer was Kuala Lumpur Kepong Bhd while British American Tobacco
Malaysia Bhd led decliners.
The most-active stock was Sumatec Resources Bhd.
Within Asia, Japan's Nikkei fell 0.03%. In China, Hong Kong's Hang Seng declined 0.22% while the Shanghai Composite was 0.61%
lower.