Market Close KLCI cuts losses, ends flat ahead of Raya break

by **Cals** Tue 06 Aug 2013, 18:03

Market Close KLCI cuts losses, ends flat ahead of Raya break
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Tuesday, 06 August 2013 17:14

KUALA LUMPUR (August 6): The FBM KLCI cut losses to end almost flat. At 5pm, the KLCI fell 0.5 point to settle at 1,784.64 as gains in Maxis Bhd and CIMB Group Holdings Bhd helped reduced the index's losses.

The KLCI had earlier reached an intraday low of 1,779.47 as investors locked in profits ahead of the Hari Raya Aidilfitri break beginning this Thursday (August 8), analysts said. Losses in stocks like PUBLIC BANK BHD [] and Genting Malaysia Bhd had dragged the KLCI lower.

"The KLCI had declined ahead of the Hari Raya break," RHB Research Institute Sdn Bhd research head Lim Chee Sing told theedgemalaysia.com over telephone today.

Bursa Malaysia said in a recent statement that tomorrow (August 7), the local bourse will be opened for half-day trading till 12.30pm, after which, the exchange will be closed until this Friday (August 9).

Globally, Lim said investors are also anticipating when the US Federal Reserve will start reducing its bond purchases under its quantitative easing (QE) scheme.

The QE which aims to rejuvenate the US economy, has resulted in a larger supply of US dollars and fueled demand for emerging market assets such as equities and bonds across Asia.

"It is a question of when, and not if the US Federal Reserve tapers the QE," Lim said.

Today, Bursa Malaysia saw 1.28 billion shares worth RM1.65 billion changed hands. There were 410 gainers versus 341 decliners.

The top gainer was FABER GROUP BHD []. RHB CAPITAL BHD [] led decliners while the most most-active entity was Sona Petroleum Bhd warrant.

Abroad, Japan’s Nikkei 225 rose 1% while Hong Kong's Hang Seng fell 1.34%

Nearer to home, Singapore's Straits Times declined 0.58%

Reuters that Asian shares fell to a two-week low on Tuesday, with Japan a notable exception as it reversed early losses, while the Australian dollar pushed away from a three-year trough after the central bank cut official rates to a record low.

Japanese stocks rose more than 2.5 percent from their lows to end up 1 percent on talk the central bank was buying exchange-traded funds and a Reuters report a massive public pension fund was considering increasing its allocation mix to buy more stocks.