Market Close KLCI volatile, falls 0.2% ahead of US jobs data

Business & Markets 2014
Written by Chong Jin Hun of theedgemalaysia.com
Thursday, 09 January 2014 17:14
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KUALA LUMPUR (Jan 9): The FBM KLCI vacillated between gains and losses
before falling 3.09 points or 0.2 % to 1,828.21. This came amid Asian markets'
losses ahead of the announcement of the US' jobs report tomorrow.
The jobs report is a crucial indicator of the US economy. Hence, more optimistic
job data prompts expectation that US policy makers will reduce quantitative
easing measures at a faster pace, a move which does not bode well for Asian
emerging markets.
A remisier told theedgemalaysia.com over telephone today : "The KLCI's
decline could be due to the US jobs report".
The KLCI's decline came on losses in stocks like IOI Corp Bhd and Tenaga
Nasional Bhd.
From a technical viewpoint, RHB Research Institute Sdn Bhd technical analyst Mohammad Ashraf Abu Bakar said the KLCI's long-term
trend is positive.
But the short-term outlook indicate "a bit more downside" for the index, Mohammad Ashraf said.
Bursa Malaysia saw 1.85 billion shares worth RM1.95 billion changed hands. There were 392 gainers versus 427 decliners.
The top gainer was Hong Leong Capital Bhd. Leading decliners include plantation stocks IOI, Genting Plantations Bhd, and BLD
Plantation Bhd.
The most-active stock was Iris Corp Bhd.
Plantation companies' shares had fallen ahead of the Malaysian Palm Oil Board's announcement tomorrow on the sector's December
output and inventory numbers.
Today, Asian markets fell. Japan's Nikkei dropped 1.5% while Hong Kong's Hang Seng declined 0.91%.
Nearer to home, Singapore's Straits Times ended 0.2% lower.
Reuters reported that Asian shares wavered on Thursday after a lacklustre performance on Wall Street overnight and ahead of a key U.S.
jobs report due out Friday, while the dollar hovered near a seven-week high against a basket of currencies.
Market reaction was muted to a slowdown in China's annual consumer inflation in December, which decelerated to 2.5 percent from the
previous month's 3 percent, more than the market had expected.