KLCI flat on European banking, crude oil concerns

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KUALA LUMPUR (Sept 28): The FBM KLCI rose 0.24 point to close at 1,664.96 points on European banking sector concerns and after crude oil fell 3% overnight.

During the day, the KLCI had vacillated between gains and losses. The index reached its intraday high and low at 1,671.07 and 1,663.88 points, respectively.

Reuters reported Asian shares spent much of the trading session in negative territory, on investor concern about the state of the European banking sector and lower oil prices.

A rise in Deutsche Bank shares helped push European stocks higher on Wednesday, easing concerns over Germany's financial sector that had hit equities in Asia and drove investors into safe-haven government bonds and the dollar.

Oil prices were slightly higher, partially reversing Tuesday's fall of some 3% on diminished expectations that oil producers meeting in Algiers this week would reach an agreement to ease a global glut of crude. Brent crude, the international benchmark, last traded at US$46.08 a barrel, up 11 cents on the day, on data showing a surprise drawdown in U.S. inventories.

In Malaysia, TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com that the KLCI was expected to be choppy till the end of the month, due to oil price uncertainties.

“There may be some upside at the month end, if there is any third quarter-end window dressing activities, which could see the index rise to levels of 1,680 points. Other than that, the market is expected to trade sideways this week,” Soo said.

Bursa Malaysia saw 1.58 billion shares, valued at RM2.02 billion, traded. There were 370 gainers and 397 decliners.

Top gainer was Dutch Lady Milk Industries Bhd, while leading decliner was British American Tobacco (M) Bhd. The most active counter was Sanichi Technology Bhd, with some 72 million shares traded.