FBM KLCI rebounds after declining on U.S. rate hike talk

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KUALA LUMPUR (Aug 22): The FBM KLCI rose 3.39 points or 0.2% on bargain hunting and as investors waited for more indications on U.S. interest rate direction.

At 5 p.m., the KLCI closed at its intraday high at 1,691.07 points. Earlier, the KLCI fell to its intraday low at 1,682.59 points, as certain Asian share markets fell.

Hong Kong's Hang Seng erased losses to close 0.26% higher. South Korea's Kospi declined 0.68%.

Last Friday, the KLCI dropped 7.19 points.

Today, Reuters reported Asian shares slipped, while the dollar lifted off last week's lows on expectations a signal might emerge from a Federal Reserve gathering this week in Jackson Hole, Wyoming, that the U.S. central bank is gearing up to hike interest rates.

Global central bankers will join the annual mountain retreat that opens on Thursday, with Fed Chair Janet Yellen due to speak on Friday.

In Malaysia today, Inter-Pacific Research Sdn Bhd research head Pong Teng Siew told theedgemarkets.com that investors remained cautious.

“This morning, (the stock market) was down, mostly because many investors were waiting to see the stocks that were caught with the sell-down and how they would do today. Cautiously, a bit of buying crept back into the blue chips,” Pong said.

Bursa Malaysia recorded volume of 1.85 billion shares, worth RM1.47 billion. Decliners outnumbered gainers at 533 against 303.

Leading decliner was Dutch Lady Milk Industries Bhd, while Lay Hong Bhd led gainers. The most actively-traded stock was Dagang Nexchange Bhd.