KLCI edges higher, supported by local funds

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KUALA LUMPUR (June 6): The FBM KLCI edged up higher by 12.53 points or 0.77%, supported by local funds, as the ringgit strengthened to 4.0985 against the US dollar after ranging between 4.08 and 4.136 throughout the day.

At 5pm today, the benchmark index closed at 1,648.99 points.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said the KLCI is most likely supported by local funds, with the lesser influence of foreign funds, after the large fund outflow seen recently.

"Small caps are not doing well. They are either flat or slightly down as opposed to the KLCI. This is probably because local liquidity is still very tight and small caps tend to react to liquidity flow.

"As for blue chips, now that the foreign fund has been reduced, the local funds' support is likely to focus on the KLCI's components," he added.

He also added that the unexpected negative news from US may see foreign funds repositioning and rebalancing their fund into emerging markets again.

Across Bursa Malaysia, decliners led gainers by 432 to 345 while 331 were unchanged. Volume was 1.278 billion shares worth about RM1.35 billion.

AE Multi Holdings Bhd was the top active counter today with British American Tobacco (M) Bhd leading the gainers while United Plantations Bhd led the decliner list.

Across Asia, Japan's Nikkei 225 dropped 0.4% to 16,580.03 points after falling to as low as 16,322.64 points, the weakest since May 10, while Hong Kong's Hang Seng index rose 0.4% to 21,030.22 points. South Korea's Kospi and Singapore's Strait Times Index also edged up by 0.04% to 1,985.84 points and 0.7% to 2,828.80 points, respectively.

Meanwhile, Reuters reported that Japan's Nikkei share average fell to a four-week low on Monday as the yen appreciated sharply against the dollar after Friday's disappointing US jobs data, adding pressure on the outlook for Japanese exporters.

The US had reported the lowest number of jobs created in more than five years, with the creation of 38,000 jobs in May, the smallest increase since September 2010.