FBM KLCI closes lower after last-minute selling

FBM KLCI closes lower after last-minute selling
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KUALA LUMPUR (June 27): The FBM KLCI today closed 0.11% lower due to last-minute selling in selected heavyweights.

This led to the KLCI ending 1.79 points lower at 1,672.7 points.

Hong Leong Investment Bank Bhd's head of retail research Loui Low told theedgemarkets.com that the last-minute selling was within a narrow range as traders have adopted a risk-averse mode ahead of the two-day G20 meeting, which will begin tomorrow.

“The KLCI has been trading sideways over the couple of days ahead of the US-China trade talks. Not much activity has been seen in the market as traders are avoiding the volatility ahead,” said Low.

Notably, nearly half of the bluechips settled in the red today, led by Petronas Gas Bhd as the biggest decliner after losing 40 sen or 2.29% to close at RM17.10. Petronas Gas was also the third biggest loser across Bursa Malaysia today.

The local stock exchange saw a total of 1.84 billion shares, worth RM1.9 billion traded throughout the day. Gainers led losers by 367 to 352, while 444 counters remained unchanged.

Across Asia, Japan's Nikkei 225 rose 1.19% while South Korea's Kospi climbed 0.59%. Hong Kong’s Hang Seng also advanced 1.42%.

Reuters reported that Asian shares crept higher on Thursday following a media report that the US and China have tentatively agreed to a truce ahead of a highly-anticipated weekend meeting of the two nations’ leaders in Tokyo.

The South China Morning Post (SCMP), citing sources, said Washington and Beijing were laying out an agreement that would help avert the next round of tariffs on an additional US$300 billion of Chinese imports.

On Wednesday, US President Donald Trump said a trade deal with his Chinese counterpart Xi Jinping was possible this weekend though he was prepared to impose tariffs on virtually all remaining Chinese imports if talks fail, said Reuters, adding that many traders were still circumspect and expected the market to remain in a narrow range until after the weekend meeting of G20 leaders in Osaka, Japan, where Trump is also holding bilateral talks with other nations.