KLCI closes slightly higher on bargain hunting after sharp falls in line with regional declines

KLCI closes slightly higher on bargain hunting after sharp falls in line with regional declines
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KUALA LUMPUR (Sept 4): The FBM KLCI closed marginally higher on mild bargain hunting in the later part of the trading session.  But overall sentiment remained tepid in line with the decline at regional markets, following Wall Street’s sharp fall overnight.

The index ended the day 0.46 points or 0.03% higher at 1,515.86, after opening sharply lower and remaining in the red for the most part of the session.

MIDF Research head of research Imran Yassin Md Yusof told theedgemarkets.com that the heavy selldown in early trading was a spillover effect from the overnight plunge on Wall Street.

The market sentiment remained bearish thereafter until the bargain hunting activities ahead of the close.

Imran said the KLCI is likely to tread on cautious mode next week amid the selldown on the US markets and with Bank Negara Malaysia's Monetary Policy Committee set to decide whether a further interest rate cut is needed.

On the broader market today, losers led gainers by 578 to 385, while 514 counters closed unchanged. Volume was 7.04 billion shares valued at RM4.08 billion.

All of Bursa Malaysia’s indices closed lower except for the energy index.

The technology index fell the most in percentage terms, closing 1.8% lower at 57.26, followed by the healthcare index, which dropped by 1.74% to 3,857.01.
Elsewhere  in Asia, Japan's Nikkei 225 fell 1.11% and South Korea's Kospi dropped 1.15%. Hong Kong’s Hang Seng Index sank 1.25% while the Shanghai Stock Exchange Composite Index closed down 0.87%.

Reuters reported that emerging Asian stock markets were pumelled today, with many plumbing multi-week lows, after the steep sell-off on Wall Street unnerved investors ahead of US jobs data later in the session.

“US indexes marked their biggest one-day falls since June on Thursday on the back of furious profit-taking, while analysts worry a disappointing non-farm payrolls report could deepen the selling,” the report said.