KLCI slips after two-day rally

-A +A

KUALA LUMPUR (July 1): The FBM KLCI slipped 7.86 points today in what analysts say is a temporary reversal after gaining for two consecutive days when oil prices strengthened and the Brexit effect waned.

At the close of trading hours, the benchmark index was 0.48% lower at 1,646.22 points.

Etiqa Insurance & Takaful head of research Chris Eng said the loss today was simply a retracement of the strong rally in the last couple of days.

"The market saw some retracement from the rally. Moving forward, it's still very much depending on global development. But after such a strong rally recently, I wouldn't be surprised if we see a mild retracement further next week," he said.

As for market volume, Malacca Securities Sdn Bhd technical analyst Loui Low Ley Yee told theedgemarkets.com that it was not really exciting today.

"The market is still pretty cautious if you look at the trading volume, which is below its three-month average volume. The [upcoming Hari] Raya break could also be another reason for the low volume today," he added.

In Asia, Japan's Nikkei closed 0.7% higher after the yen surrendered more of the territory it gained during the flight to safety seen earlier in the week. On a week-on-week basis, it gained 4.9%, its biggest weekly increase since mid-April.

South Korea's Kospi was also up; it ended the day 0.9% higher, capping off the week with a 3.2% increase.

Reuters reported that Asian stocks rose on Friday and that European markets were expected to follow as investors continued to recover from last week's Brexit shock.

But it noted that the pound has come under fresh pressure after the Bank of England's governor hinted at an interest rate cut ahead.

Across Bursa, decliners led gainers by 413 to 295. Scientex Bhd was the top gainer, while Lebtech Bhd was the leading decliner; Borneo Oil Bhd was the most active counter today.