KLCI extends losses on further market uncertainties

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KUALA LUMPUR (June 1): The FBM KLCI extended losses at the mid-day break, tracking the fall of some key Asian markets.
 
At 12.30pm, the benchmark index declined 11.59 points or 0.7% to 1,735.93 points, led by losses in stocks such as Telekom Malaysia Bhd, RHB Capital Bhd and Genting Bhd.
 
Asian shares slipped on Monday after separate surveys of Chinese factory activity failed to banish concerns about a slowdown in the world's second-largest economy, according to Reuters.
 
Persistent fears about Greece's financial situation and downbeat US data also sapped investors' confidence.
 
In Malaysia, market breadth was negative, as losers nearly doubled gainers at 455 against 229, while 250 counters remained unchanged.
 
The top gainer was Y&G Corp Bhd, while the leading decliner was British America Tobacco (M) Bhd. The most active counter was Hubline Bhd.
 
TA Securities, in a note today, said volatility of the KLCI should remain high due to current market uncertainties.
 
"Most market participants are likely to stay sidelined pending more stability in emerging markets, which need to adjust to the eventual rise of US interest rates and resolution of Greece's debt talks deadline this coming Friday," it said.
 
The research house also noted that technical momentum on the index has stayed "extremely bearish" despite being excessively oversold after suffering heavy losses in the past few weeks.