KLCI pares gains as regional markets struggle

-A +A

KUALA LUMPUR (Sept 15): The FBM KLCI pared some of its gains at the midday break today, as regional markets struggled ahead of this week’s monetary policy decision in the US, as well as a holiday-shortened trading week in Malaysia.

At 12.30pm, the FBM KLCI was up 7.91 points to 1,647.54. The index had earlier risen to 1,645.48.

Gainers led losers by 365 to 326, while 291 counters traded unchanged. Volume was 1.43 billion shares, valued at RM1.22 billion.

The top gainers included Malaysia Airports Holdings Bhd, Petronas Dagangan Bhd, United Plantations Bhd, BLD Plantation Bhd, Tenaga Nasional Bhd, Cahya Mata Sarawak Bhd, Sarawak Oil Palms Bhd, Gamuda Bhd, Aemulus Holdings Bd and Time Dotcom Bhd.

The actively-traded stocks included Ingenuity Consolidated Bhd, Aeumlus, Felda Global Ventures Holdings Bhd, UMW Sunrise Bhd, Sumatec Resources Bhd, AirAsia Bhd, Bumi Armada, Perisai Petroleum Teknologi Bhd and The Media Shoppe Bhd.

The decliners included British American Tobacco (M) Bhd, Hong Leong Financial Group Bhd, Kossan Rubber Industries Bhd, Lii Hen Industries Bhd, New Hoong Fatt Holdings Bhd, Only World Group Holdings Bdh, Aeon Co (M) Bhd, Top Glove Corporation Bhd and Sime Darby Bhd.

Asian shares struggled on Tuesday, as caution reigned ahead of this week's U.S. Federal Reserve decision on interest rates, while the yen edged higher after the Bank of Japan refrained from any new policy steps, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan erased early gains and fell 0.5%, taking its cue from slumping Chinese shares. The Shanghai Composite Index was down 2.4% and the CSI300 index was 2.6% lower, it said.

BIMB Securities Research said that in Asia, stocks continue with their yesterday's slide, as investors were also wary of the Feds move.

However, it said Malaysia rebounded, following the announcement of some market stimulus, predominantly the RM20 billion fund for Valuecap to invest.

The research house said the FBM KLCI impressed with a 36.03 point jump to 1,639.63, amid the continuous selling by foreign funds, which saw another net outflow of RM86 million yesterday.

“Whether the market would warm up to the stimulus remains to be seen, but at least some things are being done to revitalise the “bombed-out” sentiments of the local bourse.

“It will be interesting to see if the foreign funds would come out to sell today, but we should see selling to diminish in the short term and expect the index to hover around the 1,635/1,640 range,” it said.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)