Market Close KLCI dips 0.27%, tracks regional losses

Market Close KLCI dips 0.27%, tracks regional losses
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Thursday, 06 June 2013 18:05


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KUALA LUMPUR (June 6): The FBM KLCI extended losses today, as it fell 4.82 points or 0.27% to close at 1,769.6 points.

The bellwether was traded higher in the morning to reach a high of 1,777.74 points at 9:09 am. But the positive momentum was sustained for only 38 minutes from the opening bell.

The KLCI was then relegated into the red for the rest the day.

The index had fallen on losses in blue chip stocks like Petronas Gas Bhd, PPB GROUP BHD [], CIMB Group Holdings Bhd, AMMB HOLDINGS BHD [] and Astro Malaysia Holdings Bhd.

Analysts said the KLCI had tracked losses across Asia Pacific markets due to investors’ concerns on the direction of the US' monetary policy.

Interpacific Securities head of research Pong Teng Siew said investors are concerned about the possibility of the US Federal Reserve slowing down or halt its stimulus programme.

“The ongoing pullback across the region is caused by investors’ soured sentiment in the share markets,” Pong told theedgemalaysia.com.

Pong said many investor have moved away from equities and high-yield bonds.

He said investors should take the opportunity to reduce equities in their portfolios until there is stability in the region.

“Not that there is no more upside in the local stock market. Institutional funds are reluctant to sell off their investments as they tend to be more optimistic and have their backs covered,” Pong said.

But for retail investors, he said now could be a good time to lower risks from any instability brought to this region.

Up until recently, the Federal Reserve’s stimulus programme had benefited Asia Pacific markets. As it has been continuously buying US bonds, investors have veered their attention towards emerging markets for better yields.

Across Bursa Malaysia, a total of 1.89 billion shares worth RM2.32 billion changed hands. Decliners more than doubled gainers, at 593 and 268.

MALAYSIAN AIRLINE SYSTEM BHD [] was the most-actively traded entity, followed by LUSTER INDUSTRIES BHD [] and DVM TECHNOLOGY [] BHD [].

Top gainers included SHANGRI-LA HOTELS (M) BHD [], NESTLE (M) BHD [] and LYSAGHT GALVANIZED STEEL BHD [].

Leading decliners were United PLANTATION []s Bhd, TAHPS GROUP BHD [] and DUTCH LADY MILK INDUSTRIES BHD [].

Many indices in the Asia Pacific also closed lower today.

Japan’s Nikkei dropped 110.85 points or 0.85%, Hong Kong’s Hang Seng fell 230.81 points or 1.05%, China’s Shanghai Composite shed 25.38 points or 1.12%, while Australia’s ASX 200 dropped 54.03 points or 1.12%,

Meanwhile, South Korea’s Kospi fell 30.32 points or 1.52% while Singapore’s Straits Times declined 49.92 points or 1.54%.

Reuters reported that Asian shares tumbled to fresh 2013 lows on Thursday as growing uncertainty on whether the US Federal Reserve would roll back its stimulus this year kept markets on edge, while turbulence in Japanese equities led to choppy dollar-yen trade.

Malaysia's Department of Statistics will release the April 2013 external trade numbers tomorrow.