KLCI dips in line with regional markets after recent rally

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KUALA LUMPUR (May 19): The FBM KLCI edged lower in early trade today in line with regional markets as Greek fiscal woes weighed on investor sentiment.

At 9am, the FBM KLCI fell 4.48 points to 1,819.02 on profit taking on select blue chips after the recent rally.

The top losers in early trade included Petronas Gas Bhd, UMW Holdings Bhd, MISC Bhd, British American Tobacco (M) Bhd, Petronas Chemicals Group Bhd, IJM Corporation Bhd, Eco World Development Group Bhd, Tasco Bhd, Axiata Group Bhd and Maxis Bhd.

Asian shares edged down on Tuesday as worries over Greece's fiscal woes took some of the shine off Wall Street's record close, helping steer the dollar higher and undermining the euro, according to Reuters.

Fears of a Greek bankruptcy persisted even as the country's finance minister said on Monday that it was close to a deal with its lenders that would help it meet debt repayments next month, it said.

JF Apex Securities Research in a market preview today said that US stocks climbed with the Dow and S&P hitting new highs after ignoring concerns on Greece and rising bond yields.

Similarly, it said European markets ended higher after Greece stated its intention to enter into a new agreement with creditors by month-end.

“On the local market, the FBM KLCI rose 11.58 points to 1823.50 points following a last minute spike.

“Following the optimism in global markets, we expect the KLCI to test the resistance of 1,830 points with potential profit taking from the recent upward rebound,” it said.