Market Close KLCI erases gains on lack of buying interest, ringgit strengthens

by **Cals** Tue 10 Jun 2014, 03:16

Market Close KLCI erases gains on lack of buying interest, ringgit strengthens

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Monday, 09 June 2014 17:26

KUALA LUMPUR (June 9): The FBM KLCI erased gains for a 0.99 point or 0.05% rise to settle at 1,863.69 due to a lack of investors' participation. The rise came on gains is stocks like Tenaga Nasional Bhd and PPB Group Bhd

Lee Cheng Hooi, regional chartist at Maybank Investment Bank Bhd noted that the Malaysian stock market trading volume was quite sluggish today. Lee said the KLCI drifted lower due to a lack of buyers.

“My view is that the index would break below 1,860 despite some foreign buying and inflows into the country via a stronger ringgit.

“The KLCI is also going to violate that key trendline up from its recent low of 1,769.80 in Feb 2014 and this will throw the onus onto the downside and next support levels of 1,845 and 1,802,” Lee told theedgemalaysia.com.

TA Securities Holdings Bhd wrote in a note today trading momentum could be muted due to the school holidays and ahead of the World Cup event.

The ringgit strengthened against the US dollar to RM3.1975 today from RM3.2122 last Friday.

Bloomberg reported that Malaysia’s ringgit rose to the strongest level in almost seven months as reports on Chinese shipments and US employment brightened the export outlook.

Across Bursa Malaysia, 1.12 billion shares worth RM1.24 billion were traded.

Decliners outpaced gainers at 401 versus 321, while 327 counters were unchanged.

Top decliners included Fima Corp Bhd, Warisan TC Holdings Bhd and Petronas Dagangan Bhd, while top gainers were United Plantations Bhd, PW Consolidated Bhd and PPB Group Bhd.

Eti Tech Corporation Bhd was the most-active stock

Across Asia, Japan’s Nikkei rose 0.31%, Hong Kong’s Hang Seng increased 0.73%, while South Korea’s Kospi fell 0.27%.

Reuters reported that Asian stocks touched their highest levels in nearly three years on Monday, basking in the glow of a record close on Wall Street after bright U.S. jobs data pointed to improving economic momentum.