KLCI up on local institutional buying as foreign selling tapers

KLCI up on local institutional buying as foreign selling tapers
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KUALA LUMPUR (June 3): The FBM KLCI rose 5.93 points or 0.4% on local institutional buying as crude oil and Asian shares gained ahead of the crucial US job report today.

At 5pm, the KLCI closed at 1,636.46 points on gains in stocks like SapuraKencana Petroleum Bhd. SapuraKencana shares rose three sen to RM1.68 to become Bursa Malaysia's ninth most-active stock.

Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew said as the effect of foreign selling tapered, local funds were seen supporting Malaysian shares.

"I think the market is seeing foreign selling ease, and support from the local funds," Pong told theedgemarkets.com.

He said this followed the semi-annual review of the KLCI, where Hap Seng Consolidated Bhd would be added into the index while UMW Holdings Bhd would be dropped.

Meanwhile, SapuraKencana will be included into the FTSE Bursa Malaysia Hijrah Shariah Index. According to Bursa Malaysia and FTSE Russell's joint statement yesterday, the changes will take effect on June 20.

Today, Bursa Malaysia saw 1.3 billion shares valued at RM1.45 billion traded. There were 402 gainers and 342 decliners.

The top gainer was Dutch Lady Milk Industries Bhd while top decliners included Goldis Bhd and Huat Lai Resources Bhd. The most-active counter was Tiger Synergy Bhd.

Across Asian share markets, Japan's Nikkei 225 rose 0.48% while Hong Kong's Hang Seng was up 0.42%.

Reuters reported that Asian shares advanced on Friday as traders awaited US jobs data later in the day, with subdued activity in many markets underscoring investor wariness over rising prospects of a near-term Federal Reserve rate hike.

Brent oil prices held around US$50 (RM207.38) a barrel on Friday following an Organization of the Petroleum Exporting Countries meeting that failed to agree on output targets, but which was seen as supportive as Saudi Arabia pledged not to flood the market with more fuel.