KLCI up on weaker ringgit as index seen oversold

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KUALA LUMPUR (June 2): The FBM KLCI rose 4.03 points or 0.2%, helped by a weaker ringgit against the U.S. dollar. Technical analysts said the KLCI which was deemed oversold, was ripe for a rebound.

At 5 p.m., the KLCI closed at 1,630.53 points. The index pared gains, after reaching an intraday high at 1,635.00 points.
 
The ringgit weakened to 4.1495 against the U.S. dollar, after depreciating to the weakest intraday level at 4.1760. The ringgit weakened against a strengthening U.S. dollar in anticipation of near-term U.S. interest rate hikes.
 
In Malaysia, Malacca Securities Sdn Bhd technical analyst Loui Low Ley Yee said the KLCI was "supported by a stronger U.S. dollar against the ringgit."

"The KLCI has been oversold [for] the past few weeks, and its performance today is somewhat a technical rebound,” he told theedgemarkets.com.

Bursa Malaysia saw 1.75 billion shares, valued at RM1.84 billion, traded. There were 486 gainers and 333 decliners.

Top gainer was Chin Teck Plantations Bhd, while leading decliner was Scientex Bhd. Most active stocks included Bumi Armada Bhd and AirAsia Bhd.

Asian share markets were mixed. Japan’s Nikkei 225 fell 2.32%, while Hong Kong’s Hang Seng rose 0.47%. South Korea’s Kospi was up 0.12%.

Reuters reported a jump in the yen sent Japan's Nikkei reeling more than 2%, as a stronger currency did not bode well for Japanese exporters.

MSCI's broadest index of Asia-Pacific shares outside Japan struggled to keep its head above water, after rising more than 3% over the last seven days.