KLCI closes just above 1,600 after 11th hour bargain hunting

KLCI closes just above 1,600 after 11th hour bargain hunting
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KUALA LUMPUR (Aug 15): The FBM KLCI closed just above the 1,600 level today, after recouping almost all its losses for the day as investors resorted to bargain hunting in the eleventh hour.

After opening 15.40 points lower at 1,584.91, the benchmark index dropped further to as low as 1,581.26 before recovering to the finish the day at 1600.29, just 0.02 point lower than yesterday's close.

The broader market was however largely negative with 524 losers versus 247 winners.

Trading volume fell below the two billion mark at 1.94 billion shares worth RM1.85 billion.

Today's tepid trading mirrored regional peers which fell in a domino effect, tracking the overnight tumble at Wall Street, before most pared losses to close in positive territory.

Japan's Nikkei closed 1.21% lower. Hong Kong's Hang Seng Index rose 0.76% while the Shanghai composite index increased 0.25%.

All three major US indexes closed down about 3% on Wednesday, with the blue-chip Dow posting its biggest one-day point drop since October, Reuters reported. This happened after the US Treasury yield curve temporarily inverted for the first time in 12 years — considered a classic recession signal.

In a note to clients today, Malacca Securities Sdn Bhd said Malaysian stocks are unlikely to find much solace as broad market sentiments stay cautious, due in part to the ongoing threats to the global economic environment and the still unresolved trade spat between the US and China that is likely to keep sentiments in check for longer.