KUALA LUMPUR (July 12): The FBM KLCI ended flat for a 0.1 point gain at 1,653.97 points, as Asian shares'rose after U.S. equities' overnight advance.
The KLCI turned positive at the 11th hour, after falling to an intraday low at 1,647.88 points. Across Asian share markets, Japan’s Nikkei 225 rose 2.46%, while Hong Kong's Hang Seng climbed 1.65%.
Reuters reported Asian stocks rose to a two and a half month peak on Tuesday, a day after Wall Street shares hit a record high, thanks to a combination of upbeat U.S. data and expectations of more stimulus from global policymakers.
Japan's Nikkei jumped as investors bet the country's government may inject US$100 billion in fiscal spending to boost the economy, possibly financed by the central bank's money-printing, a policy mix that is often dubbed "helicopter money".
In Malaysia, Malacca Securities Sdn Bhd technical analyst Loui Low Ley Yee told theedgemarkets.com that share traders were seen adopting a defensive stance, as they evaluated world economic and financial market dynamics.
He said domestic stock-trading saw lacklustre buying interest throughout the day and would probably remain “indecisive” at this juncture. "Traders are staying in defensive stocks, like construction and consumer-related ones,” he said.
Across Bursa Malaysia, 1.4 billion shares, worth RM1.59 billion, were traded. There were 374 gainers and 369 decliners.
Top gainer was Panasonic Manufacturing Malaysia Bhd, while the biggest decliner was Fraser & Neave Holdings Bhd. Borneo Oil Bhd and AirAsia Bhd were among the most-actively-traded counters.
In currency markets, the ringgit strengthened to 3.9805 against the U.S. dollar, as foreign investors were seen buying Malaysian Government bonds. The exchange rate was between 3.9730 and 4.0105 today.
In a note, Nomura said foreign investors raised their Malaysian Government bond holdings by RM7.1 billion last month, versus RM2.3 billion in May. The purchases in June had increased foreign ownership of Malaysian Government bonds to a historical high at 34.2%, according to Nomura.
Nomura said: "From an FX strategy perspective, we view continued inflows into longer-dated Malaysian Government bonds as constructive for MYR."