Market Close KLCI down 1.38pts as investors eye US data

by **Cals** Tue 29 Mar 2016, 04:47

Market Close

[size=28]KLCI down 1.38pts as investors eye US data

By Supriya Surendran / theedgemarkets.com | March 28, 2016 : 6:06 PM MYT

KUALA LUMPUR (March 28): The FBM fell 1.38 points or 0.1% as investors waited for U.S. inflation data, which will offer clues on the nation's interest rate direction.

The U.S. is scheduled to announce the personal consumption expenditures (PCE) inflation data at 1230 GMT today. Higher inflation may result in expectation of further US interest rate hikes, which do not augur well for Asian markets.

Malaysia's KLCI closed at 1,702.41 points at 5pm. The index cut losses, after falling to an intraday low at 1,698.26.

Reuters reported the PCE inflation data will be followed by a speech from Federal Reserve Chair Janet Yellen and a few other Fed policymakers on Tuesday, making the Fed's policy the biggest focus for now.

The dollar firmed on Monday and most Asian markets surrendered early gains, as investors cautiously awaited U.S. economic data and speeches by Federal Reserve officials this week, that could signal more interest rate increases than expected.

In Malaysia, Jupiter Securities chief market strategist Benny Lee told theedgemarkets.com that the market’s performance today saw a lack of catalyst.

Lee said this was because certain markets were closed for the Good Friday and Easter holidays. US, Hong Kong and Australia markets were closed last Friday for Good Friday.

Today, Hong Kong and Australia markets were also closed for Easter. Japan’s Nikkei 225 was up 0.77%, while China's Shanghai Composite fell 0.73%.

Lee said: “I think the KLCI’s performance is pretty much in line with the other regional markets, which are all having rather (dull) performances today, following the long (US and European) markets holiday, as investors lack catalyst for decision making,” he said.

Bursa Malaysia saw 1.54 billion shares, valued at RM1.3 billion, traded. There were 447 decliners against 321 gainers.

Top gainer was Goldis Bhd, while leading decliner was Nestle (M) Bhd. The most active stocks included Eka Noodles Bhd and AirAsia Bhd.
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