FBM KLCI retreats as investors take profit

FBM KLCI retreats as investors take profit
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KUALA LUMPUR (July 3): The FBM KLCI today closed 0.95 point or 0.06% lower on profit-taking after Asian stock indices fell as investors evaluated global trade conflicts between the US and its major trading partners China and Europe.
At 5pm, the KLCI closed at 1,690.05 points after cutting losses in the final trading minutes. The KLCI had earlier fallen to its intraday low at 1,683.24.

“There is nothing much to be worried about, especially after the last couple of days of upside,” Rakuten Trade Sdn Bhd head of research Kenny Yee told theedgemarkets.com today.

Yesterday, the KLCI closed up 7.38 points at 1,691 on expectation of a trade truce between the US and China and as higher crude oil prices supported market sentiment. The KLCI extended gains yesterday after rising 11.49 points on Monday (July 1).

Today, the KLCI could have also taken cue from Asian stock indices' drop. Japan's Nikkei 225 closed down 0.53%, South Korea's Kospi fell 1.23% while Hong Kong’s Hang Seng was down 0.07%.

Reuters reported that Asian shares fell on Wednesday as initial enthusiasm over the latest US-China trade truce was overtaken by fresh concerns over Washington's threat of tariffs on additional European goods.

It was reported that global growth concerns also weighed on investor confidence, with South Korea the latest trade-reliant economy to cut its economic growth and export targets, a day after weaker factory readings worldwide.

Across Bursa Malaysia today, the exchange saw 3.01 billion shares worth RM1.82 billion traded.

The most-active stock was Sumatec Resources Bhd, which registered a trade volume of 563.64 million shares. The stock closed up 2.5 sen or 250% at 3.5 sen.

Another active stock was Datasonic Group Bhd after RHB Investment Bank Bhd raised its target price for the shares to 77 sen from 65 sen. Datasonic rose 4.5 sen or 6.87% to 70 sen with some 43 million shares traded.