KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
KUALA LUMPUR (June 24): The FBM KLCI closed 6.1 points or 0.36% lower today on profit taking as Malaysian shares appeared overbought after four straight days of gains. At 5pm, the KLCI closed at 1,676.13.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the profit taking today followed the KLCI's more-than-40-point gain last week.
"We see this positive momentum tapering as investors keep an eye on clues regarding the trade dispute between the US and China at the G20 summit later this week," said Leong.
TA Securities Holdings Bhd said today technical momentum indicators on the KLCI are flashing overbought signals following last week's strong rally, implying more potential for profit-taking correction this week to tame the overbought condition.
"Nevertheless, trend indicators signal improving upward momentum, which should counter the short-term overbought condition. Meantime, increasing optimism for a US-China trade deal in the G20 summit this weekend and growing confidence for a rate cut by the US central bank next month on the external front, and keen first-half window-dressing interest on the domestic side should boost market sentiment ahead of the month-end," TA Securities wrote in a note.
Across Asia, Reuters reported that stock markets inched higher on Monday on hopes that US and Chinese leaders will be able to get trade talks back on track this week, while oil prices bounced on political tensions between Tehran and Washington.
It was reported that investors are nervously awaiting an expected meeting between presidents Donald Trump and Xi Jinping later this week for any signs of a de-escalation in a trade war that is damaging the global economy and souring business confidence. It was reported that the leaders will meet on the sidelines of the G20 summit in Japan.
In Malaysia today, crude oil price gains partly drove share trade volume as top-active stocks Bumi Armada Bhd and Sapura Energy Bhd prices rose in tandem with oil markets.
Across Bursa Malaysia, 1.81 billion shares worth RM1.68 billion were traded.
Bumi Armada rose 0.5 sen to close at 21 sen, with 65 million shares traded while Sapura Energy settled 0.5 sen higher at 31 sen, with a volume of 59 million shares.
In oil markets, it was reported that Brent futures were up 11 cents, or 0.17%, at US$65.31 a barrel by 0845 GMT while West Texas Intermediate crude was up 40 cents, or 0.7%, at US$57.83 a barrel.
Source: The Edge
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