KLCI stays flat as 1Q earnings fall short of expectations

KLCI stays flat as 1Q earnings fall short of expectations
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KUALA LUMPUR (May 30): The FBM KLCI remained fairly flat today, closing 0.45 points or 0.03% higher at 1,765.34, as the market appeared unimpressed by first quarter financial results.

“(There was) a bit of disappointment on the market's part, as the big comeback was expected in 1Q earnings did not live up to expectations,” said Pong Teng Siew, head of research at Inter Pacific Securities Sdn Bhd, although he himself did not feel let down by the results.

In particular, the small and mid-cap indexes were in the midst of a correction, Pong said, highlighting that most other regional indices were down.

A total of 2.61 billion shares worth RM2.16 billion were traded. Decliners outpaced gainers by 680 to 235 stocks with 348 other counters unchanged.

Gainers were led by Ajinomoto (M) Bhd, Petronas Gas Bhd, and KESM Industries Bhd. Meanwhile, the day’s top losers were Panasonic Manufacturing Malaysia Bhd, Fraser & Neave Holdings Bhd and Genting Malaysia Bhd.

Hibiscus Petroleum Bhd, Luster Industries Bhd, and AirAsia X Bhd were the top three most active counters of the day.

Reuters reported that concerns over Greece’s inability to fulfil debt repayments due in July weighed on both the European and Asian stock markets, with European markets experiencing a soft start.

Japan’s Nikkei, meanwhile, was flat on a stronger yen and South Korea’s KOSPI fell 0.4% on profit taking after the market rallied this month.