KLCI tracks world equity losses on Greece uncertainty, US data

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KUALA LUMPUR (June 5): The FBM KLCI eked out a minor rise before erasing gains, tracking world equity losses amid  Greece's financial uncertainties. Anticipation of crucial US economic data, which offers clues on the timing of the country's interest rate hike also hit sentiment.

Bloomberg reported that Asian stocks fell for a fifth day, with the regional benchmark index heading for its second week of losses, following a decline in U.S. equities as Greece asked for a deferral on its debt payments.

Malaysia's KLCI added 1.47 points or 0.1% to 1,742.95 at 9:07am before falling 2.61 points to 1,738.87 at 9:16am.

Across Asia, Japan's Nikkei 225 fell 0.4% while South Korea's Kospi declined 0.3%.

“The market selloff isn’t over given the huge moves we’ve seen this week in the bond markets. Greece delaying debt payments is definitely not positive.

"There’s a lot of pressure on asset prices that’s really related to the bond market moves," Bloomberg quoted CMC Markets chief market strategist Michael McCarthy as saying.

Bursa Malaysia saw some 78 million shares worth RM41 million changed hands. There were 119 gainers versus 168 decliners.

The top gainer was Pharmaniaga Bhd while Kuala Lumpur Kepong Bhd led decliners. The most-active stock was K-One Technology Bhd.

In currency markets, the ringgit weakened to 3.7125 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