Market Close KLCI falls 0.4% on portfolio rebalancing

by **Cals** Thu 05 Jun 2014, 03:17

Market Close KLCI falls 0.4% on portfolio rebalancing

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Wednesday, 04 June 2014 17:22

KUALA LUMPUR (June 4): The FBM KLCI declined 7.35 points or 0.4% to close at 1,865.20 points due to portfolio rebalancing by fund managers.

The fall in the benchmark index came on decline in stocks such as Public Bank Bhd, Tenaga Nasional Bhd and Genting Bhd.

“The market decline today may be due to portfolio rebalancing by fund managers,” JF Apex Securities’ analyst Lee Cherng Wee told theedgemalaysia.com over the telephone.

Lee said the portfolio rebalancing could be spurred by a review of the KLCI constituents, which occurs on a semi-annual basis.

Maybank Investment Bank Research in a note today expects some poor buying interest to emerge near the weak supports of 1,842 points to 1,867 points.

The research house also expects some heavy liquidation to emerge at the resistances of 1,872 points and 1,889 points.

Across Bursa Malaysia, a total of 1.0 billion shares, worth RM1.4 billion were traded. Market decliners led gainers by 407 versus 334, while 335 counters were unchanged.

The top gainer was TAHPS Group Bhd while the leading decliner was British American Tobacco (M) Bhd. The most active counter was Salcon Bhd.

Reuters reported Asian shares stepped back from their recent highs on Wednesday, while the dollar benefited from rising U.S. Treasury yields and pressure stayed on the euro ahead of expected easing steps from the European Central Bank.

U.S. economic data on Tuesday showed new orders for factory goods rose for a third straight month in April and automakers recorded solid vehicle sales in May, adding more evidence to support market expectations of an improved second quarter performance.

U.S. jobs data on Friday could help determine whether the rise in yields will continue. The U.S. nonfarm payrolls report for May is expected to show that employers added 218,000 jobs, according to the median estimate of 105 economists polled by Reuters.

Across the region, Japan’s Nikkei 225 ended 0.22% higher and Singapore’s Straits Times Index closed down 0.50%.

In China, the Shanghai Composite Index ended 0.66% lower and Hong Kong’s Hang Seng closed 0.65% lower.

South Korea markets are closed for a holiday.