Market Close KLCI volatile, falls 0.04% ahead of US Federal Reserve meeting

by **Cals** Sat 27 Jul 2013, 01:35

Market Close KLCI volatile, falls 0.04% ahead of US Federal Reserve meeting
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Friday, 26 July 2013 17:13

KUALA LUMPUR (July 26): The FBM KLCI vacillated between positive and negative territories before falling 0.81 point or 0.04%.

At 5pm, the KLCI settled at 1,807.61 points on losses in stocks including CIMB Group Holdings Bhd and UEM SUNRISE BHD [].

Fund managers said the Malaysian market saw lower trading volume on less investor participation today which is also a public holiday in certain states.

Anticipation of the US' Federal Reserve policy meeting next week also had a hand in dictating market sentiment, they said.

"There is less trading volume across Bursa Malaysia. It is a Friday and holiday in Selangor," TA Investment Management Bhd chief investment officer Choo Swee Kee told theedgemalaysia.com over telephone.

Across Bursa Malaysia, 1.12 billion shares worth RM1.62 billion changed hands. There were 303 gainers versus 443 decliners.

The top gainer was BRITISH AMERICAN TOBACCO (M) [] Bhd while NESTLE (M) BHD [] led decliners. The most-active entity was Gabungan AQRS Bhd warrant.

Yesterday (July 25), Bursa Malaysia saw 1.37 billion shares worth RM1.86 billion traded. A day earlier (July 24), the KLCI closed at its all-time high of 1,810 points.

Across Asia today, Japan’s Nikkei fell 2.97% while Hong Kong’s Hang Seng added 0.31%.

Reuters reported that Tokyo shares tumbled on Friday on the back of a stronger yen and the dollar languished at a five-week low against a basket of currencies as investors waited for clarity on U.S. stimulus at the Federal Reserve's policy meeting next week.

A Wall Street Journal report that the Fed may debate changing its forward guidance to help ram home its message that it will keep interest rates low for a long time to come put the dollar on the back foot overnight.

But most economists and traders still expect the Fed could start tapering its monetary stimulus in September.