The KLCI recorded its biggest decline in recent weeks on June 16, with the 100-stock index at 1,074.12, the lowest since June 9. The 52-week high is 1,241.59 and 52-week low was 801.27. It is currently trading at a price-to-earnings of 18.48 times.

The market could extend its consolidation on June 17 unless there are clearer external signs of economic recovery in the US and investors would still look towards the US markets for direction. However, the second day of losses on Wall Street will dampen investors' risk appetite for equities.

Light crude oil resumed its upward trend, rising US$1.32 to US$71.94 while the third-month crude palm oil futures contract staged a recovery to close RM11 higher at RM2,400.

Stocks to watch would be Transmile, Perwaja, Perisai, KPJ and insurers.

Transmile has seen Emerging Markets Growth Fund Inc ceasing to be a substantial shareholder of the air cargo transport company after selling 1.84 million shares at RM1.46 each on June 12.

Perwaja has filed its defence and counterclaim for refund of up to RM105 million from Petronas being excess payments for gas supply.

Perisai Petroleum has proposed a private placement of up to 10% of its paid-up at an indicative issue price of 56 sen per share which would enable it to raise up to RM40.11 million.

The proceeds raised will be used to fund Perisai Group's working capital requirements, for partial repayment of the group's bank borrowings and to defray expenses incidental to the proposed private placement.

The ex-date for  KPJ Healthcare’s proposed distribution via dividend-in-specie of up to 48.99 million units of Al-`Aqar KPJ REIT  to the KPJ shareholders of KPJ Healthcare will go ex on June 26. This will be on the basis of 23 units in Al-`Aqar for every 100 KPJ shares.

Bank Negara is studying the possibility of reviewing the “tariff-based’ insurance system for motor vehicles that had been effective since 1978 and replace it with a “risk-based” system,