KUALA LUMPUR (June 10): The FBM KLCI closed down 1.58 points or 0.1% today at its intraday low of 1,579.90 on profit taking in the final trading hour as global investors waited for the US inflation data and the European Central Bank's (ECB) interest rate decision.
In Malaysia, analysts and fund managers sald investors are observing keenly the nation’s political developments involving meetings between political party heads with the King.
Areca Capital Sdn Bhd chief executive officer Danny Wong said investors are taking a wait-and-see approach while TA Securities Holdings Bhd analysts wrote in a note today that the local market should trade sideways given the recent domestic political development with regard to the meetings involving political party heads with Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah "as investors stay aside pending more certainty”.
It was reported that ongoing developments in the country, in particular the Covid-19 pandemic, were the main agendas discussed when political party leaders were granted an audience with the King at Istana Negara here yesterday.
It was reported that this ended speculation that the meetings had to do with the current political landscape.
"Prime Minister Tan Sri Muhyiddin Yassin was the first to be granted an audience at 8am for the pre-Cabinet meeting, which usually takes place every Wednesday, to provide updates on the development of the country's administration. The meeting lasted an hour.
"Opposition leader Datuk Seri Anwar Ibrahim, who was also granted an audience, was spotted entering the main gate of the palace at 10:40am and left an hour later,” Bernama reported.
Across Bursa Malaysia today, there were 520 gainers versus 436 decliners. A total of 4.91 billion securities were traded for RM2.74 billion today compared with six billion shares valued at RM3.2 billion yesterday.
According to Wong, investors are waiting to see later today what the latest round of US inflation data reveals, as well as the ECB’s interest rate decision.
“At the same time, we are now at the tail end of (the corporate financial) reporting season for the first quarter, with many companies already having disclosed their results,” he told theedgemarkets.com.
Notable stocks today included IJM Plantations Bhd and Kobay Technology Bhd.
IJM Plantations’ share price closed up 60 sen or 24.39% at RM3.06 after Kuala Lumpur Kepong Bhd offered to buy IJM Corp Bhd’s 56.2% stake in IJM Plantations for RM1.53 billion or RM3.10 per share.
Meanwhile, Kobay’s share price hit limit up after the stock ended 54 sen or 29.51% higher at RM2.37.
Bursa had yesterday issued an unusual market activity (UMA) query on the sharp rise in price and volume of the company’s shares yesterday.
In response to Bursa’s UMA query, Kobay said today in a Bursa filing that the company is unaware of any rumour or report concerning the group's business and affairs that may account for the UMA.
Globally, it was reported that world shares hovered near a record high and the dollar also held steady on Thursday as investors eyed US inflation data for any sign the Federal Reserve could start tapering its massive stimulus.
It was reported that the ECB is set to keep rates unchanged when it meets later in the session, despite the most recent inflation print passing the target of just under 2%.
"Ahead of both key events, market sentiment remained subdued with MSCI's broadest gauge of global stocks flat at 715.89 points, just off a record high of 718.19 hit last week,” Reuters reported.