Market Close KLCI negatively flat after record close

by **Cals** Thu 10 Jul 2014, 02:30

Market Close KLCI negatively flat after record close

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Wednesday, 09 July 2014 17:29

KUALA LUMPUR (July 9): The FBM KLCI ended negatively flat today following two preceding days of record close.

At 5pm, the benchmark index fell 1.49 points or 0.08% to settle at 1,891.16 points. Yesterday, the KLCI surged to 1,892.65 points, erasing the previous day's record of 1,892.50 points.

JF Apex Securities’ senior analyst Lee Cherng Wee told theedgemalaysia.com: “The market decline is due to profit-taking activities subsequent to the decline in the US markets.”

Lee, however, said for the long-term, the positive trading pattern of the KLCI was still intact. He opined the index might breach the 1,900 points level by this month.

Meanwhile, TA Securities, in a note today, said stocks should extend profit-taking consolidation today following the overnight correction on Wall Street, and amid caution ahead of Bank Negara's monetary policy meeting starting tomorrow, which is expected to make a decision on interest rates .

The research house added key uptrend supports for the index are at the 30-day moving average at 1,878 points, followed by the 50-day moving average at 1,875 points.

Across Bursa Malaysia, a total of 1.8 billion shares, worth RM1.9 billion were traded. Market gainers trailed decliners by 341 versus 498, while 308 counters were unchanged.

The top gainer was Shangri-La Hotels (M) Bhd while the leading decliner was Petronas Gas Bhd. The most active counter was China Stationery Limited.

Asian stocks extended losses to a one-week low on Wednesday after China's consumer price inflation cooled slightly more than expected in June, pointing to lingering weakness in the economy, according to Reuters.

Across the region, Japan’s Nikkei 225 was down 0.08%, while South Korea’s Kospi fell 0.31%.

In China, the Shanghai Composite Index ended 1.23% lower and Hong Kong’s Hang Seng also closed 1.55% lower.

Reuters added spreadbetters predicted mixed openings in Europe, where markets were likely to get some support after Alcoa Inc reported quarterly results late in the U.S. session that beat analysts' expectations.

Later on Wednesday, the U.S. Federal Reserve will release minutes of its latest policy meeting, and European Central Bank officials including President Mario Draghi are scheduled to speak.