KLCI advances on bargain hunting

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KUALA LUMPUR (June 10): The FBM KLCI rose at the midday break on some mild hunting activities in line with a tentative rebound at most regional markets.

At 12.30pm, the FBM KLCI rose 7.32 points to 1,736.37.

The top gainers included United Plantations Bhd, Hong Leong Financial Group Bhd, PPB Group Bhd, Syarikat Takaful Malaysia Bhd, Telekom Malaysia Bhd, NCB Holdings Bhd, Petronas Dagangan Bhd, Lafarge Malaysia Bhd, Asia File Corporation Bhd, CIMB Group Holdings Bhd, Batu Kawan Bhd and Genting Plantations Bhd.

The most actively traded stocks included Vsolar Group Bhd, Minetec Resources Bhd, AirAsia X Bhd, Frontken Corporation Bhd, KNM Group Bhd and Naim Indah Corporation Bhd.

The top losers included Panasonic Malaysia Manufacturing Bhd, Globetronics Technology Bhd, Nestle (M) Bhd, Aeon Credit Services (M) Bhd, Golden Land Bhd, LPI Capital Bhd and Eastern & Oriental Bhd.

Asian shares made a tentative rebound from three-month lows on Wednesday though the spectre of higher borrowing costs in the United States and concerns about the apparent lack of progress in talks between Greece and its creditors sapped confidence, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3% after hitting a fresh three-month low, though it is down almost 9% from the seven-year peak hit in late April, it said.

BIMB Securities Research said that in Asia, key indexes ended broadly lower yesterday with sharp decline in Indonesia, Philippines, Japan and Hong Kong as investors in the region were mostly weighing scenarios of central bank tightening in the coming months.

Locally, the research house said the FBM KLCI lost 10.4 points or 0.6% to 1,729.05 on thin volume, dragged down mainly by telco and O&G counters.

“Trading participation saw net selling by foreign institutions and local retail while local institutions were net buyers.

“Meanwhile the ringgit hit a nine-year low as the USD climbed broadly against Asian currencies after robust US jobs data bolstered expectations of an interest rate hike by the Federal Reserve before year end.

“We reckon the local market to remain weak in the short term due to poor investor sentiment with immediate support at 1,720,” it said.