KLCI tracks regional losses; ringgit weakens

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KUALA LUMPUR (June 5): The FBM KLCI tracked regional market losses amid Greece's financial uncertainties and anticipation on the timing of US interest rate hikes.

At 12.30pm, the KLCI fell 1.45 points or 0.1% to settle at 1,740.03. Across Asia, Japan's Nikkei 225 dipped 0.4%, South Korea's Kospi lost 0.16% while Hong Kong's Hang Seng declined 0.88%.

Reuters reported that Asian shares were mostly lower on Friday while bonds snapped a vicious losing streak and the euro retreated as investors braced for US jobs data and another day of drama over Greece.

The US employment data is a crucial indicator of the nation's economy, hence, will offer clues on the timing of interest rate hikes.

Across Bursa Malaysia, 575.68 million shares worth RM497.3 million changed hands. The bourse saw 382 decliners versus 242 gainers.

The top gainer was British America Tobacco (M) Bhd while decliners were led by Kuala Lumpur Kepong Bhd.

The most-actively traded counter was K-One Technology Bhd.

In a note today, Hong Leong Investment Bank analyst Nick Foo Mun Pang said the KLCI was oversold and its technical indicators were deemed negative for the near term.

Foo said the KLCI was "still stuck in consolidation".

"Given the subdued trading sentiment and overnight fall on Dow Jones, KLCI is likely to resume its consolidation for a while," he said.

In currency markets, the ringgit weakened to 3.7145 against the US dollar. Lower crude oil prices do not bode well for the ringgit as the commodity constitutes a crucial portion of the Malaysian economy.

The ringgit also depreciated against a strengthening US dollar in anticipation of US interest rate hikes this year.