KUALA LUMPUR (June 16): The FBM KLCI fell today as investors stayed cautious while awaiting the outcome of the US Federal Open Market Committee (FOMC) meeting.

The benchmark index closed 3.05 points or 0.19% lower at 1,578.32.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said market sentiment was jittery ahead of the meeting of the FOMC, a committee within the US Federal Reserve System.

“The market movement in the next few days will depend on the outcome of the FOMC. If the Federal Reserve tapers its bond buying program, we may see the pull back from the market and vice versa,” he told The Edge.

While believing a recovery is an eventuality, Hong Leong Investment Bank Research analyst Ng Jun Sheng said investors may turn cautious about the heightened risks of economic and corporate earnings growth prospects following an extension of the full movement control order to June 28, as well as the Malay rulers’ special meeting and FOMC outcome.

“Nevertheless, there is light at the end of the tunnel with downside risk cushioned near 1,552 to 1,566 zones, as investors weigh on the National Recovery Plan announcement and acceleration in daily vaccination rates to 300,000 to 400,000 jabs by end Aug,” he said in a note today.

Across Bursa Malaysia, 4.69 billion securities were traded for RM3.14 billion, compared with 5.86 billion securities worth RM3.66 billion yesterday.

Losers led gainers by 668 to 349, while 449 counters closed unchanged.

Malaysian Pacific Industries Bhd was the day's top gainer, rising 68 sen or 1.71% to RM40.56. Other top gainers included Genetec Technology Bhd (up 54 sen or 11.56% to RM5.21) and Innity Corp Bhd (up 30 sen or 64.52% to 76.5 sen).

Nestle (Malaysia) Bhd was the top loser, falling 80 sen or 0.59% to RM134.6. Other leading losers included Fraser & Neave Holdings Bhd (down 52 sen or 1.96% at RM26) and Euro Holdings Bhd (which hit limit down after plunging 51 sen or 29.65% to RM1.21).

KNM Group Bhd was the most actively traded stock. The stock, which saw 153.86 million shares traded, slipped 0.5 sen or 2.44% to 20 sen.

Asian bourses were mixed today ahead of the FOMC meeting. South Korean shares posted another record high closing with KOSPI rising 0.62% to 3,278.68, but Japan’s Nikkei 255 slid 0.51% to 29,291.01 and Hong Kong’s Hang Seng ended 0.77% lower at 28,418.61.