Market Open KLCI starts June on cautious note

by **Cals** Mon 03 Jun 2013, 10:09

Market Open KLCI starts June on cautious note
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Monday, 03 June 2013 09:15

A + / A - / Reset
KUALA LUMPUR (June 3): The FGM KLCI started the new month on a cautious note on Monday and rose marginally, lifted by select blue chips.

At 9.05am, the FBM KLCI rose 2.40 points to 1,771.62.

Gainers trailed losers by 101 to 188, while 124 counters traded unchanged. Volume was 107 million shares valued at RM61.53 million.

The gainers included BAT, Nestle, KLCC, TDN, Panasonic, Genting and Yinson.

BIMB Securities Research in a market preview on Monday said the markets were now entering an interesting phase of equities trading as the financially steroids reliant investors may actually want to see lower than expected economic figures so that the US pump priming would continue.

In said that last Friday’s improved US job data for May saw the Dow Jones Industrial Average down by 209 points to 15,116 and would see this as an excuse to lock in profits after a sterling performance by the equities market.

On the flipside, a record high unemployment rate of 12.2% for April saw dumping of European stocks as most ended broadly lower, it said.

The research house said that in Asia, stocks were mixed amid heightened volatility and may see more nervy trading within the region as investors may look to take profit going forward.

“Locally, the FBM KLCI succumbed to last minute selling as the index shed 5.7 points to 1,769.22 despite a promising morning session.

“We would expect the consolidation phase to continue exacerbated by the recent less than inspiring corporate earnings season with the immediate support level at 1,760 level,” it said.

Asian shares began the new month with a cautious tone on Monday as uncertainty over how much longer the current U.S. stimulus would continue prompted investors to book profits from recent highs and pulled global equities lower, according to Reuters.

Speculation over whether and when the U.S. Federal Reserve would start scaling back its current massive bond-buying programme emerged following a string of positive U.S. data and was the catalyst for corrections across markets which had drawn strong support from the Fed's largesse, it said.