Market Close KLCI rises 0.4% on blue chip gains, positive sentiment

by **Cals** Wed 02 Jul 2014, 23:25

Market Close KLCI rises 0.4% on blue chip gains, positive sentiment

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Wednesday, 02 July 2014 17:18

KUALA LUMPUR (July 2): The FBM KLCI remained in positive territory for most of the day, ending 0.41% higher on gains in selected blue chips amid positive sentiment among global markets.

At 5.00pm market close, the benchmark index rose 7.72 points or 0.41% to settle at 1,886.84 points.

A remisier attributed the rise in the KLCI today to gains made by index-linked stocks and also a generally positive sentiment in global markets.

“The rise in the index today is in line with the overnight rise in US markets, while other markets in the region are also posting gains,” he told theedgemalaysia.com.

He also noted that there was more activity in the local market today, with blue chips as well as small cap stocks making gains.

Across the board, a total of 1.88 billion shares worth RM2.05 billion were traded.

Market breadth was positive as gainers led decliners at 470 versus 336. Another 325 counters were unchanged.

British Americian Tobacco (M) Bhd led the top gainers, while the top decliner was Allianz Malaysia Bhd. The most active stock on the bourse was China Stationery Ltd.

Across the region, Japan’s Nikkei rose 0.29%, Hong Kong’s Hang Seng rose 1.55%, while South Korea’s Kospi rose 0.81%.

Reuters reported that Asian stocks scored a three-year peak on Wednesday in the wake of upbeat global economic data that whetted risk appetites and helped Wall Street taste all-time highs.

Dealers said fund managers were rotating money out of bonds and into equities for the start of the second half of the year, nudging up U.S. Treasury yields.

At the same time, the outlook for super-low rates in the major economies and an almost eerie absence of volatility across markets, encouraged investors to take on leveraged bets in search of higher returns - the so-called carry trade.