KUALA LUMPUR (Aug 27): The FBM KLCI opened lower today as Malaysia's corporate financial reporting season for the April-June quarter nears its conclusion.
At 9am today, the KLCI opened 0.99 point lower at 1,807.60. At 9:07am, the index dropped 2.24 points to 1,806.35. Malaysia's corporate financial reporting season for the April-June quarter starts in July although most companies announce their earnings in August.
Today, Hong Leong Investment Bank Bhd wrote in a note : "As we approach the peak of the August reporting season, we believe traders will trade on a cautious manner. The FBM KLCI may trend sideways between the range of 1,790-1,810 over the near term. Meanwhile, we still see opportunities within the export-related and selected O&G (oil and gas) stocks on the back of weaker ringgit prospects and firmer crude oil prices, respectively."
Malaysian shares bucked Asian equities' rise. Reuters reported that Asian shares rose early on Monday, taking support from Wall Street's gains on Friday after US Federal Reserve Chairman Jerome Powell said a gradual approach to raising rates was best to protect the US economy and job growth.
It was reported that Powell's comments, which were in line with market expectations, helped to push the S&P500 index and Nasdaq Composite to record highs on Friday, cementing the S&P's longest-running bull market, as defined by some investors. In early Asian trade on Monday, S&P500 E-mini futures touched a record high of 2,885, and were last 0.2 percent higher at 2,882.5.