KLCI makes further gains, may see profit taking before weekend

KLCI makes further gains, may see profit taking before weekend
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KUALA LUMPUR (June 20): The FBM KLCI closed at its intraday high of 1,675.43 points today as positive external factors continue to support market sentiment, but an analyst does not rule out profit taking activity tomorrow ahead of the weekend.

At market close, the benchmark index settled 8.89 points or 0.53% higher.

When contacted, Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that the increment in KLCI this week was largely sentiment-driven, and investors seem to have overbought amidst optimism over US-China trade talks.

"With the recent uptrend, Malaysian market is very much fairly valued now, maybe there will be some profit taking tomorrow before the weekend," he said.

Reuters reported that Asian stock markets rallied on Thursday while the US dollar dropped and global bond yields plunged, with the 10-year US yield falling below 2%, after the Federal Reserve signalled possible interest rate cuts later this year.

Japan's Nikkei gained 0.6% today, Hong Kong's Hang Seng Index went up 1.23%, and South Korea's Kospi rose 0.31%.

In Malaysia, total market trading volume was 2.27 billion, worth some RM2.28 billion.

Market breadth was positive, with 468 gainers versus 353 losers, while 380 counters remained unchanged.

Notable gainers include Tenaga Nasional Bhd and Yinson Holdings Bhd, while Sime Darby Plantation Bhd was the second largest decliner, after Shangri-la Hotels (M) Bhd.

Greatech Technology Bhd was the most actively traded counter with 104.34 million shares done.