FBM KLCI ends at week’s high but trading remains lacklustre

TheEdge Fri, Sep 06, 2019 05:57pm - 4 years View Original


KUALA LUMPUR (Sept 6): Trading on the local bourse remained lacklustre amid lack of strong buying impetus.

The FBM KLCI moved in a tight range between 1,599 points and 1,606 points. It managed to end in positive zone to close at 1,604.47 points — the highest level for the week. The benchmark index was up 0.3%.

Week-on-week, however, the FBM KLCI fell 0.48% from its closing of 1,612.14 on Aug 30.

Across the bourse, a total of 1.65 billion shares were traded, valued at RM1.43 billion. The low trading volume indicates the current poor appetite for Malaysian stocks. Market breadth turned positive, as 364 gainers outnumbered 309 decliners, while 478 counters were unchanged.

The ringgit strengthened to 4.1790 against the greenback at the time of writing, continuing its recovery since touching a three-year low of 4.2203 on Sept 3.

Hong Leong Investment Bank (HLIB) sees that the FBM KLCI has formed a base at the 1,600 level having been through the consolidation phase moving between 1,580 and 1,620 over the past month.

“We still believe that the FBM KLCI has stabilised around the 1,580 — 1,600 levels, where the downside risk could be limited.

“The KLCI may retest the 1,620 level,” said the research house in a note.

The gainers were led by British American Tobacco (Malaysia) Bhd, MISC Bhd and Shangri-La Hotels (M) Bhd, while Nestle (M) Bhd topped the decliners. The most actively traded stock was Priceworth International Bhd .

Similarly, markets in the region rose amid easing trade war concerns. Japan’s Nikkei 225 rose 0.54%, South Korea’s Kospi gained 0.22%, while the Shanghai Composite Index increased 0.46%.

Reuters reported that Asian stocks gained on Friday, joining a global trend as investors took heart from firm US economic data and hopes a meeting between US and Chinese negotiators next month signals an easing in trade tensions.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4%, putting it on track for a 2.2% weekly gain — which would make it the best week since mid-June, it said.

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