KLCI remains in negative zone as investors stay wary after poor 1Q corporate showing


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KUALA LUMPUR (June 2): The FBM KLCI remained in negative territory at the mid-morning break today as investor sentiment stayed jittery after the poor 1Q corporate earnings season.

At 10.03am, the FBM KLCI fell 4.18 points to 1,738.23.

The top losers included British American Tobacco (M) Bhd, Carlsberg Brweery (M) Holdings Bhd, Tasco Bhd, Malaysia Smelting Corporation Bhd, Hong Leong Financil Group Bhd, Guinesss Anchor Bhd, Axis REIT and Berjaya Food Bhd.

The actives included Frontken Corporation Bhd, KNM Group Bhd, APFT Bhd, Privasia Technology Bhd, Nova MSC Bhd, Sumatec Resources Bhd, Kanger International Bhd and K-One Technology Bhd.

The gainers included Nestle (M) Bhd, Kian Joo Can Factory Bhd, Can-One Bhd, Pestech International Bhd, C.I. Holdings Bhd, Kawan Food Bhd, Danainfra Nasional Bhd and Hartalega Holdings Bhd.

The dollar tested a 12-1/2-year peak against the yen on Tuesday after a spate of mostly upbeat U.S. data reinforced expectations that the Federal Reserve would raise interest rates this year, while Asian shares were little changed, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan was down in early trade, while Japan's Nikkei stock index edged up about 0.1 percent, it said.

BIMB Securities Research said that in Asia, key indexes ended mixed on Monday with Japan snapping its longest winning streak since 1988, while Shanghai rose after stumbling badly last week after China’s PMI data for May came in above expectation.

“Locally, the FBM KLCI ended 4.11 points lower to 1,743.41 dragged down mainly by telco and banking stocks.

“Trading participation saw net selling by foreign institutions and local retail while local institutions were net buyers.

“The local market will remain bearish in the short term due to poor investor sentiment coupled with continuous selling by foreign institutions. Expect the index to see strong support at 1,740 followed by 1,735,” it said.