Limited gains for KLCI as regional markets trade range-bound

-A +A

KUALA LUMPUR (Aug 19): The FBM KLCI posted limited gains as regional markets traded range-bound following China stocks extending their fall.

The trading pattern appeared to suggest the market had a propensity to turn negative in later trading.

At 12.30pm, the FBM KLCI was up 4.80 points to 1,584.40. The index had earlier risen to its intra-morning high of 1,594.68.

The top gainers included Malaysian Pacific Industries Bhd, P.I.E. Industrial Holdings Bhd, SAM Engineering & Equipment Bhd, Pestech International Bhd, Syarikat Takaful Malaysia Bhd, PPB Group Bhd, Top Glove Corporation Bhd, CIMB Group Holdings Bhd, Supermax Corporation Bhd and Coastal Contracts Bhd.

The actives included The Media Shoppe Bhd, APFT Bhd, AirAsia Bhd, Frontken Corporation Bhd, China Automobile Parts Holdings Bhd, Vsolar Group Bhd, Tiger Synergy Bhd and IFCA MSC Bhd.

The losers included United Plantations Bhd, Negri Sembilan Oil Palms Bhd, IHH Healthcare Bhd, Hong Leong Financial Group Bhd, Sarawak Oil Palms Bhd, AMMB Holdings Bhd, Petronas Chemicals Group Bhd, Hartalega Holdings Bhd and Boustead Holdings Bhd.

Asian shares on Wednesday struggled at two-year lows after Chinese stocks extended their fall, stoking fears about the stability of China's economy, according to Reuters.

The Shanghai Composite Index retreated 3.9%, a day after worries that the central bank could be in no hurry to ease policy further pushed it down 6.1%. The plunge dented hopes of Chinese share markets stabilising after Beijing effectively pulled out all the stops to stem the rout, it said.

BIMB Securities Research said that on earlier trading, key regional indices ended mostly lower, mainly due to terrorism in Bangkok, weak economic data from Indonesia and strong selling in Chinese stocks.

Locally, it said the FBM KLCI ended higher, gaining 7.06 points or 0.45% to 1,579.60 on bargain hunting, mainly on banking and telco stocks.

“Foreign investors remain the net seller yesterday with outflow of more than RM300 million.

“We expect the local market to remain volatile with slight bias to down trend to continuous selling by foreign investors with the index hovering circa 1,570–1,580,” it said.