KUALA LUMPUR (Sept 4): The FBM KLCI pared losses to close 0.82 point or 0.05% lower while Bursa Malaysia small to mid market capitalisation (small-to-mid cap) counters staged a technical rebound as Asian shares took cue from China share gains.
At Bursa Malaysia, the KLCI closed at 1,812.76 at 5pm while the small cap index gained 173.17 points or 1.21% to 14,441.29. The ACE Market index added 89.69 points or 1.74% to 5,252.55.
The KLCI pared losses at 5pm after falling to its intraday low at 1,809.24.
In China, the Shanghai Stock Exchange Composite climbed 1.1% while Hong Kong's Hang Seng rose 0.94%. Elsewhere across Asia, South Korea's Kospi gained 0.38%.
Reuters reported that Asian shares rose on Tuesday, with markets reversing earlier losses, but investors were apprehensive as the Sino-US trade dispute threatened to escalate this week and Argentina's austerity measures rattled emerging markets.
It was reported that Chinese shares snapped a five-day losing streak on Tuesday, as investors hunted for bargains in beaten-down real estate and banking stocks, but the threat of US tariffs on US$200 billion worth of imported Chinese goods still clouded the market.
In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that the KLCI is expected to remain range bound this week as KLCI-linked counters have reached their long-term average fair value.
“Most small cap stocks (had) seen a rebound today but the bigger ones like KLCI (stocks) came down a bit, we think small-to-mid cap counters have staged a technical rebound today after a few days of selling previously.
“There is not much news flow other than the continued trade war tension. So we expect overall market for this week to remain range bound, because we think the index (KLCI) stocks have reached their long-term average fair value, so they will hover around the current level in the near term,” Wong said.