Market Close KLCI up 0.1% on US, China equity gains

Market Close KLCI up 0.1% on US, China equity gains
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Wednesday, 10 July 2013 17:11

KUALA LUMPUR (July 10): The FBM KLCI rose 2.22 points or 0.1% as investors took the cue from overnight gains in US markets, analysts said. This is despite China announcing weaker external trade data today.

At 5pm, the KLCI settled at 1,768.71 on gains in stocks like Genting Malaysia Bhd and PUBLIC BANK BHD [].

"Asian markets had risen on overnight gains in US markets," TA Securities Holdings Bhd research head Kaladher Govindan told theedgemalaysia.com over telephone.

"But the outook for Asian equities is volatile in anticipation of cuts in the US' quantitative easing scheme," Kaladher added.

Weaker trade data from China had however not dampened sentiment. This is in anticipation that policymakers will undertake monetary easing to sustain the world's second-largest economy.

The Shanghai and Shenzen Composite rose 2.17% and 2.85% respectively.

Reuters reported that Chinese shares rose sharply on Wednesday, with traders citing talks that China's central bank may ease policy to boost growth after the country's exports fell for the first time in 17 months.

China's exports fell 3.% in June from a year earlier, while imports dropped 0.7%, severely missing market expectations and reinforcing signs of a second-quarter economic slowdown in the world's second-largest economy. Beijing also warned of a "grim" outlook for trade.

Across Bursa Malaysia, 1.23 billion shares worth RM1.7 billion changed hands. There were 308 gainers versus 441 decliners.

The top gainer was COASTAL CONTRACTS BHD [] while Panasonic Manufacturing Malaysia Bhd led decliners.

The most-active entity was newly-listed AirAsia X Bhd. Analysts said gains in AirAsia X shares might have been curbed by "selling pressure" from investors who had acquired the stock at lower prices prior to its initial public offering (IPO).

An analyst said these investors might have bought shares of the long-haul budget airline at levels below the IPO price of RM1.25 each for institutional and retail investors.

"I suspect selling pressure from pre-IPO investors as they are not subjected to moratorium," the analyst said.

Across Asian markets, Japan's Nikkei fell 0.39% while Hong Kong's Hang Seng rose 1.07%.

Nearer to home, Singapore's Straits Times was up 0.32%.