Market Close KLCI falls on profit-taking as global bond rout hit sentiment

by **Cals** Thu 07 May 2015, 03:04

Market Close
KLCI falls on profit-taking as global bond rout hit sentiment

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By Ahmad Naqib Idris / theedgemarkets.com | May 6, 2015 : 5:33 PM MYT

KUALA LUMPUR (May 6): The FBM KLCI declined 0.4% on profit taking as a selloff in global sovereign bonds dampened regional share markets.

At 5pm, the KLCI fell 6.45 points to close at 1,820.97 points. The KLCI had declined as investors took profit from the index's 9.15 point gain yesterday.

Across Asia today, Reuters reported that a selloff in global sovereign bonds pushed Asian stocks to two-week lows on Wednesday as investors worried it might trigger profit taking in other asset classes, while the US dollar stayed on the backfoot dogged by trade deficit concerns.

Among Asian stock markets, South Korea's Kospi fell 1.3% while Hong Kong's Hang Seng declined 0.4% lower. Japan markets were closed for holiday today.

In Malaysia, [size=14]JF Apex Securities Bhd analyst Lee Cherng Wee said the KLCI was down on continued profit taking, which had been prevalent since last week.

Lee said corporate earnings announcements over the next few weeks could be catalysts for selective stocks, but they might not have a splash effect on the broader market.

"We expect the index to hover around 1,820 in the near-term. We don't see any catalysts for the market locally, but the US employment data due on Friday could be an external catalyst," said Lee.

Bursa Malaysia saw 1.92 billion shares worth RM1.80 billion exchanged. There were 454 decliners against 353 gainers while 313 counters were unchanged.

Leading decliners was Kuala Lumpur Kepong Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), while British American Tobacco (Malaysia) Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) led gainers. The most active stock was R&A Telecommunication Group Bhd.

In currency markets, the ringgit strengthened to 3.5697 against the US dollar and compared to the Singapore dollar, the ringgit appreciated to 2.6875.

Malaysian shares' decline and the ringgit's strength came ahead of crucial economic announcements tomorrow. The Statistics Department will announce the March external trade data while Bank Negara Malaysia will announce its monetary policy.

Reuters reported that all 16 economists in a Reuters poll predicted that Bank Negara Malaysia will keep its overnight policy rate steady at 3.25%. They see the stance being in line with the central bank's assessment of the economy.
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