Window dressing lifts KLCI, overall sentiment stays weak

noon_market_up_theedgemarkets

-A +A

KUALA LUMPUR (June 16): The FBM KLCI turned positive at the midday break today on some mild window dressing actitivities, lifted by select blue chips but overall market sentiment remained weak in line with the slip at most regional markets on Greek debt worries.

At the noon break, the FBM KLCI was up 1.34 points to 1,723.50.

Market breadth remained negative, however, with decliners outpacing gainers by 443 to 242, while 296 counters traded unchanged. Volume was 862.69 million shares valued at RM679.31 million.

The top gainers included United Plantations Bhd, Grand Hoover Bhd, Enra Group Bhd, PPB Group Bhd, Power Root Bhd, Pestech International Bhd, Only World Group Holdings Bhd, Harbour-Link Group Bhd, KESM Industries Bhd and LTKM Bhd.

The actively traded counters included IFCA MSC Bhd, Frontken Corporation Bhd, AirAsia X Bhd, Vsolar Group Bhd, Spring Gallery Bhd, Globaltec Technology Bhd, APFT Bhd and KNM Group Bhd.

The top losers included DanaInfra Nasional Bhd, Allianz (M) Bhd, Pharmaniaga Holdings Bhd, Syarikat Takaful Malaysia Bhd, Batu Kawan Bhd, Kuala Lumpur Kepong Bhd and Hartalega Holdings Bhd.

Asian stocks slipped on Tuesday as financial markets braced for the possibility of Greece defaulting on its debt, while a two-day policy meeting of the US Federal Reserve's monetary committee starting later in the day also prompted caution, according to Reuters.

Global equity markets have felt a pinch after talks between cash-strapped Athens and its creditors broke down over the weekend, with Greece only having two weeks before it has to repay €1.6 billion ($1.8 billion) to the International Monetary Fund. Sentiment soured further on Monday as both sides hardened their stance, it said.

BIMB Securities Research said European stocks ended sharply lower yesterday as Greek default fears increased after talks between Athens and its lenders broke down on Sunday night.

The research house said Wall Street also ended lower after the collapse of weekend talks over Greece’s bailout plan and disappointing economic data.

BIMB Securities said the Dow Jones Industrial Average and the S&P 500 lost 0.60% and 0.46% respectively to end at 17,791.17 and 2,084.43 respectively.

It said that on earlier trading, key regional markets ended broadly lower due to breakdown of Greek bailout talks and uncertainty ahead of a US Federal Reserve meeting.

“Locally, the FBM KLCI ended lower, losing 12.21 points to 1,722.16, dragged down mainly by plantation and O&G counters.

“Trading participation saw net selling by foreign institutions and local retail while local institutions were net buyers.

“We expect the local market to remain negative due to lack of fresh catalysts and poor investor sentiment with immediate support at 1,715,” it said.