Market Close KLCI pares losses, down 0.24%

Market Close KLCI pares losses, down 0.24%
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Thursday, 02 May 2013 17:45


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KUALA LUMPUR (May 2): The FBM KLCI pared losses, finishing 4.19 points or 0.24% lower to 1,713.46 points. Institutional funds helped pushed up the benchmark from the sharp fall in morning trades, according analysts.

The KLCI, which had traded between 1,704.97 points and 1,715.23 points today, dropped by 12.01 points to 1,705.64 points nine minutes after the market opened at 9am.

The index was pushed into the red mainly by losses in British American Tobacco (M) Bhd (BAT), KUALA LUMPUR KEPONG BHD [] (KLK) and Hong Leong Financial Group Bhd (HLFG).

JF Apex Securities senior analyst Lee Cherng Wee said the KLCI's fall came as the local market was closely following the US markets.

“It was largely because of the US market that dropped overnight due to the latest US economic data which shows doubts on the strength of the world's economy,” he told theedgemalaysia.com over telephone.

Interpacific Securities head of research Pong Teng Siew added that foreign funds helped the FBM KLCI to rebound.

These funds were still buying into the local market and were not really bothered with the upcoming election’s impact.

“When the market was down (in the morning), foreign funds went (into the local market) for bargain hunting,” he said.

“Foreign funds buy on the view that the US economy is slowing down. The opportunities are now in Japan and emerging economies.” Pong added.

SJ Securities senior remisier Goh Kay Chong, meanwhile, doubts that foreign funds were doing the buying. Instead, he said there could be government-linked funds that have been posing as foreign funds.

“Why would they (foreign funds) want to come here at this juncture; when the elections are on May 5?” he remarked.

RHB Research analyst Mohammad Ashraf Abu Bakar said that he sees the benchmark index having a support level of 1,700 and 1,706 points. If the index falls below the level, it would be worrying, he said.

“A lot of people expect the market to fall, but it has not been the case so far,” Ashraf said.

Across the exchange, a total of 809.03 million shares worth RM1.99 billion changed hands today. Losers thumbed gainers at 516 and 210 respectively.

Malaysian Airlines System Bhd was the top active today as it traded ex-rights. The counter was followed by SapuraKencana Petroleum Bhd and Axiata Group Bhd.

Top gainers included NESTLE (M) BHD [], PETRONAS GAS BHD [] and KHIND HOLDINGS BHD [].

Today’s top losers were BAT and Fraser & Neave Holdings Bhd.

In the region, Japan’s Nikkei closed 105.31 points or 0.76% lower, China’s Shanghai Composite Index was down 3.79 points or 0.17% and Hong Kong’s Hang Seng was down by 68.71 points or 0.3%. Singapore’s Straits Times Index, meanwhile, closed higher by 34.21 points or 1.02%.

According to Reuters, Weak Chinese manufacturing data reinforced doubts over the health of global economies and pushed Asian shares lower on Thursday, as investors cautiously awaited a European Central Bank meeting that could see interest rates cut to support growth.