KLCI extends losses on continued correction

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KUALA LUMPUR (June 14): The FBM KLCI finished lower for the fourth straight day, as the market continued to undergo a correction after rallying last week. 

The benchmark index closed 0.31% or 5.11 points lower at 1,638.63. 

The KLCI opened 5.68 points higher at 1,649.42 and hovered between 1,636.32 and 1,649.57, while cooling off from an overbought situation.

“The weakness in the benchmark index today is well expected, due to the  overbought situation from the rally last week,” Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com.

Wan added that the downside pressure was also contributed by the rising geopolitical tensions, after two oil tankers were reportedly attacked yesterday in the Gulf of Oman.

Across Bursa Malaysia, 1.75 billion shares worth RM1.67 billion exchanged hands. Losers beat gainers 463 to 276, while 403 counters traded unchanged.

Top decliners included Nestle (Malaysia) Bhd, British American Tobacco (M) Bhd, Public Bank Bhd and Carlsberg Brewery Malaysia Bhd.

United Plantations Bhd, Malaysia Airports Holdings Bhd, Apex Healthcare Bhd and Shangri-la Hotels (M) Bhd were among top gainers.

The most active counter was Greatech Technology Bhd, followed by Ekovest Bhd, Iskandar Waterfront City Bhd and Inari Amerton Bhd.

Across Asia, Japan's Nikkei 225 closed up 0.40%, while South Korea's Kospi fell 0.37%. In China, the Shanghai Stock Exchange Composite ended 0.99% lower and Hong Kong's Hang Seng sank 0.65%.

Reuters reported Asian stocks sagged today, ahead of key Chinese data that could provide more clues on how heavily the U.S.-Sino trade war is weighing on the economy, while oil prices were supported by supply concerns, after attacks on tankers in the Gulf of Oman.

“China will release May industrial production along with retail sales and investment numbers at 0700 GMT, and analysts expect any improvement from April’s downbeat readings will be mostly marginal,” the report added.