KLCI remains trapped below 1,800, lacking catalysts

KLCI remains trapped below 1,800, lacking catalysts
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KUALA LUMPUR (June 9): The FBM KLCI gained 3.32 points or 0.19% to close at 1,788.89, but remains trapped below the 1,800 resistance level amid a lack of catalysts and the uncertainty surrounding recent global developments.

On a week-on-week basis, the benchmark index has risen 11.94 points or 0.67% since it closed at 1,776.95 on June 2.

Kenanga Investment Bank Bhd research head Chan Ken Yew said the market is still consolidating following the developments in the US and UK, adding that there was not much catalyst for the local market currently.

“The market still seems to be consolidating below the 1,800 level. If it breaks the 1,787 to 1,800 ceiling, that would drive further increases in the index,” he said.

Meanwhile, Chan said investors are keeping an eye on the happenings in the US, UK and the Middle East, but said it is unlikely to have a significant impact on the local market.

Across the board, a total of 1.91 billion shares worth RM2.22 billion were traded. Gainers edged losers at 476 against 396, while 382 counters were unchanged.

Leading the gainers were Hartalega Holdings Bhd’s warrant stock HARTA-CU, while the decliners were led by Dutch Lady Milk Industries Bhd. The top active stock was Frontken Corp Bhd.

Elsewhere in Asia, Japan’s Nikkei gained 0.52%, South Korea’s Kospi increased 0.77% while Hong Kong’s Hang Seng fell 0.13%.

Reuters reported that the sterling pound spiralled lower today as British elections left no single party with a clear claim to power, sideswiping investors who had already weathered major risk events in the United States and Europe.

MSCI's broadest index of Asia-Pacific shares outside Japan were all but flat, it said.