Trading activities remain muted ahead of Hari Raya, KLCI retreats 0.68%

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KUALA LUMPUR (June 4): The FBM KLCI declined by 0.68% today, as overall market sentiment remained muted as expected.

At market close, the benchmark index settled 11.22 points lower at its intra-day low of 1,644.09 points. The index went as high as 1,655.89 points during the half-day trading today.

Bursa Malaysia opened for half-day trading until 12:30pm today, the usual practice on the eve of Hari Raya Aidilfitri.

When contacted, CIMB Research analyst Nick Foo Mun Pang told theedgemarkets.com that disappointing corporate earnings for the first quarter and global trade concern, made investors risk-averse.

“Overall sentiment remained muted as expected; the KLCI ended the half day trading on a weaker tone ahead of the Hari Raya break. Moreover, the disappointing corporate earnings for the first quarter and global trade tension [are] likely to have kept traders off risky bets today.

“Come Friday, the KLCI is likely to remain lacklustre, because the holiday mood would potentially [be] still in the air. Next week, we expect the cautious sentiment to still prevail, due to the ongoing trade dispute globally,” he said.

“From a technical standpoint, the KLCI appears to have formed a bearish reversal candlesticks pattern, following recent strong gains; therefore the index may take a breather in the near term, with immediate support at 1,628 points to 1,633 points territory. However, if the index goes up, upside will be capped in the 1,670 points and 1,680 points territory,” he added.

Reuters reported today that Asian shares fell on Tuesday, following a volatile Wall Street session, as weak economic indicators and an intensifying Sino-US trade war inflamed concerns about global growth, supporting safe-haven assets such as bonds.

At 12:16pm, Japan’s Nikkei was trading 0.04% lower, as Hong Kong Hang Seng Index also declined 0.33%, while South Korean Kospi fell 0.01%.

In Malaysia, total trading volume was 1.003 billion shares, worth RM1.007 billion, while market breadth was negative with 334 gainers versus 344 losers, with 349 counters remaining unchanged.

Notable losers included Genting Bhd, Public Bank Bhd, Bursa Malaysia Bhd and Hartalega Holdings Bhd, while gainers included Can-One Bhd and Dolomite Corp Bhd.

Hang Seng Index Structured put warrants (HSI-C5K) was the most actively-traded counter today, with 63.64 million units done, followed by Lambo Group Bhd, with 49.83 million shares exchanging hands.