Market Close KLCI down 0.47% on US debt concerns

by **Cals** Wed 09 Oct 2013, 18:22

Market Close KLCI down 0.47% on US debt concerns

Business & Markets 2013

Written by Cynthia Blemin of theedgemalaysia.com

Wednesday, 09 October 2013 17:40

KUALA LUMPUR (Oct 9): The FBM KLCI slipped into the red as uncertainty shrouding the US government's budget deadlock, and partial shutdown of public operations there keep investors on the sidelines.

At 5pm, the KLCI dipped 8.38 points to settle at 1,769.12 as key blue chip stocks like DIGI.COM BHD [] and CIMB Group Holdings Bhd fell.

Affin Investment Bank vice president and head of retail research Dr Nazri Khan said investors are staying on the sidelines as they are cautious amid the US' political squabbling, and partial shutdown of government operations in the world's largest economy.

In Malaysia, he noted that there has not been much selling activity in the equity market which is expected to stay unexciting.

Bursa Malaysia saw 1.52 billion shares worth RM1.35 billion changed hands. There were 321 gainers versus 381 decliners.

The top gainer was LPI CAPITAL BHD [] while decliners was led by HONG LEONG BANK BHD []. The most-active entity was THE MEDIA SHOPPE BHD [].

Across Asia, Japan’s Nikkei rose 1.03% while Hong Kong’s Hang Seng fell 0.63%. Nearer to home, Singapore's Straits Times climbed 0.27%.

Reuters reported that Asian shares sagged and the dollar languished close to an 8-month low on Wednesday as the US budget deadlock dragged on, further chipping away at investors' confidence that a deal will be reached before a mid-October deadline to avoid an historic debt default.

The dour mood is seen extending to Europe, where Britain's FTSE is seen slipping 0.3% from Tuesday's three-month low. Financial bookmakers also see Germany's DAX shedding 0.3% and French shares 0.2%.

While markets expect US politicians will eventually strike a deal, they are getting nervous as the deadline nears without any tangible progress between Democrats and Republicans.