Market Close KLCI snaps four-day gains, loses 0.18%

Market Close KLCI snaps four-day gains, loses 0.18%
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Tuesday, 02 July 2013 17:37

KUALA LUMPUR (July 2): The FBM KLCI snapped its four-day streak of higher close today as it lost 3.25 points or 0.18% to settle at 1,771.89 points.

The bellwether vacillated between green and red territories within the first hour of trading before it slipped further.

This was due to losses in selected KLCI constituents such as BRITISH AMERICAN TOBACCO (M) [] Bhd (BAT), HONG LEONG BANK BHD [] (HLB), UMW HOLDINGS BHD [], KUALA LUMPUR KEPONG BHD [] and GENTING BHD [].

Analysts have suspected market consolidation should kick in as the local composite index made handsome gains in the past week.

TA Securities chartist Stephen Soo told theedgemalaysia.com that the KLCI “needs to digest” the big gains from last week.

The local benchmark made a net gain of 16.69 points last week as it closed higher for three consecutive days beginning last Wednesday. It had earlier fallen a total of 27.21 points last Monday and Tuesday.

“If you remember, the latter part of last week (ended June 28) saw the KLCI’s gains in double digits. So, profit-taking activities will come,” Soo said.

He said the KLCI should see a resistance level of 1,791 points and support of 1,760 points.

“Currently, the momentum has also softened. Total daily-transacted volume almost halved from last month’s average of two billion shares a day,” he added.

Soo said with the fasting month approaching, investors are taking a break or at least will reduce their trading activities.

Kenanga Investment Bank head of research Chan Ken Yew said that the consolidation today caused the local benchmark to trade sideways.

Bursa Malaysia saw 1.17 billion shares with a cumulative value of RM1.799 billion changing hands.

Decliners edged gainers at 364 and 334 respectively.

MALAYSIAN AIRLINE SYSTEM BHD [] was the most-active counter. It was followed by LUSTER INDUSTRIES BHD [] and Ingenuity Consolidated Bhd.

Today’s top gainers were NESTLE (M) BHD [], KPJ HEALTHCARE BHD [] warrant, and PETRONAS GAS BHD [].

The biggest decliners comprised BAT, HLB and United PLANTATION []s Bhd.

Across Asia Pacific, Japan’s Nikkei gained 246.24 points or 1.78%, China’s Shanghai Composite closed 11.32 points or 0.57% higher, Australia’s ASX 200 jumped 123.71 points or 2.63%.

Hong Kong’s Hang Seng lost 144.64 points or 0.7% while South Korea’s Kospi inched down by 0.71 points or 0.04%.

Reuters reported that the US dollar edged higher against the yen and a rally in Tokyo stocks lifted world shares on Tuesday on signs of modest expansion in the United States and Japan, though the overall economic picture was mixed.

Hong Kong shares fell for the first time in four days on Tuesday, as weakness in the Chinese banking sector erased early gains and suggested more slippage in the short-term.