Market Close KLCI overbought, falls 0.3% on profit taking, Iraq uncertainty

by **Cals** Tue 17 Jun 2014, 01:18

Market Close KLCI overbought, falls 0.3% on profit taking, Iraq uncertainty

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Monday, 16 June 2014 17:20

KUALA LUMPUR (June 16): The FBM KLCI, deemed to be overbought, fell 5.16 points or 0.3% on profit taking, amid a restive Iraq which sent jitters to global markets.

Uncertainties in Iraq have led to higher crude oil prices, which will affect companies' bottom lines.

Malaysia's KLCI settled at 1,871.58 at 5pm, mainly on losses in stocks like IOI Corp Bhd and Genting Bhd.

"The KLCI is overbought," a fund manager told theedgemalaysia.com over telephone today.

Investors had locked in gains in the KLCI after the benchmark rose to its all-time intraday high of 1,889.47 points on May 19 this year.

Today, Bursa Malaysia saw 1.36 billion shares worth RM1.41 billion changed hands. There were 384 gainers versus 402 decliners.

British American Tobacco (M) Bhd led gainers while Dutch Lady Milk Industries Bhd was the top decliner. The most-active stock was Malaysian Airline System Bhd.

Elsewhere in the region, Asian markets fell with Japan’s Nikkei declining 1.09% while Hong Kong's Hang Seng fell 0.08%

Reuters reported that most Asian share markets struggled on Monday, as crude extended gains and tested nine-month highs on fears the insurgency in Iraq could spread - disrupting oil exports.

Brent rose about 0.6 percent to $113.16 per barrel, after touching $114.69 on Friday, its highest since September. Brent added more than $4 last week. U.S. crude climbed about 0.4 percent to $107.37, approaching Friday's nine-month high of $107.68.

In Malaysia today, the fund manager said oil and gas-related firms like support services providers were seen gaining from higher oil prices.

But costlier oil would not benefit transport-related stocks like airlines, according to him.

This week, the US Federal Reserve's two-day meeting, which ends on Wednesday (June 18) will also be closely watched. The outcome of the meeting will offer indications on the US' monetary policy, the direction of which, will have an impact on world markets.