KLCI ends on flat note

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KUALA LUMPUR (Feb 2): The FBM KLCI traded sideways today as investing interest subsided in the holiday-shortened week. Furthermore, selling pressure on Wall Street has also curbed interest in the local bourse, in addition to absence of local buying impetus.

The benchmark index was nearly flat to close at 1,870.48 points, up barely 1.9 points against the closing on Tuesday.

Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com today’s market showed little movement given the uncertainties on Wall Street after some selling pressure in the earlier of the week.

“After the two days of holiday, the market is digesting news of the selldown seen in US over the past few days,” said Low.

He commented that it is wise for investors to take profit on the small cap stocks considering the uncertainties in the US market.

Across Bursa Malaysia, a total of 2.61 billion shares worth RM3.25 billion were done. Market breadth was negative at a ratio of 610 decliners versus 404 advancers, while 404 other counters closed flat.

Top decliners were Malaysian Pacific Industries Bhd, Tasek Corp Bhd, and British American Tobacco (M) Bhd.

Top gainers included consumer-related stocks Nestle (M) Bhd, Carlsberg Brewery Malaysia Bhd, and Dutch Lady Milk Industries Bhd, in line with the recovery of the ringgit.

As at press time, ringgit was trading at 3.8885 against the greenback.

The regional bourses also headed south today, taking the cue from Wall Street. Japan’s Nikkei 225 slid 0.9%, South Korea’s Kospi closed 1.68% down, while the Hong Kong Hang Seng Index ended 0.12% lower.

Reuters reported Wall Street had seen a rocky week with mostly robust earnings met by rising bond yields, as central banks around the world are expected to tighten monetary policy.