KLCI ends on flat note amid lack of buying catalyst

KLCI ends on flat note amid lack of buying catalyst
-A +A

KUALA LUMPUR (July 5): The FBM KLCI ended the day on a flat note as investors remained on the sidelines on lack of catalysts.

The index closed 0.99 points or 0.06% lower at 1,532.36, after moving between 1,525.4 and 1,535.88.  

Rakuten Trade vice president of equity research Thong Pak Leng said the lacklustre trading seen today was due to the absence of buying catalyst.

“The FBM KLCI rebounded in the last minutes of trading with buying on banking and telco counters. Overall, the benchmark index ended flattish, dragged down mainly by plantation, oil and gas and glove counters,” he said.

Thong said the high number of Covid-19 cases and the enhanced movement control order (EMCO) in many areas in KL and Selangor has dampened investor sentiment.

Nonetheless, Thong believes the market is oversold and the downside risk remains low.

“We reckon this is a good opportunity for bottom fishing, especially in blue chip stocks whose valuations are currently hovering at attractive levels,” he added.

Notable losers today included IOI Corp Bhd, which dropped 2.36% or nine sen to RM3.73, followed by Top Glove Corp Bhd, Mr D.I.Y. Group (M) Bhd, and Kuala Lumpur Kepong Bhd (KLK).

Total volume on Bursa Malaysia was 6.5 billion shares. Market breadth was mixed with 525 gainers, 501 losers, and 405 unchanged counters.

Top active counters were Serba Dinamik Holdings Bhd, Kumpulan Jetson Bhd, Sedania Innovator Bhd, Pasukhas Group Bhd, Sarawak Consolidated Industries Bhd, Hiap Teck Venture Bhd, KPower Bhd and Metronic Global Bhd.

Leading gainers by value were Genetec Technology Bhd, Widetech (M) Bhd, Transocean Holdings Bhd,  Malaysian Pacific Industries Bhd, Mesiniaga Bhd, Computer Forms (M) Bhd, KESM Industries Bhd, British American Tobacco (M) Bhd, OM Holdings Ltd and Dataprep Holdings Bhd.

Top losers included Chin Teck Plantations Bhd, Dutch Lady Milk Industries Bhd, KLK, Heineken (M) Bhd, TIME dotCom Bhd, HengYuan Refining Co Bhd and Duopharma Biotech Bhd. 

Asian stocks were mixed today amid growing worries about China's crackdown on local tech companies, paring earlier gains made after a welcome US jobs report drove global shares to a record high, Reuters reported.

Japan’s Nikkei 225 fell 0.64% and Hong Kong’s Hang Seng Index was down 0.59%, while South Korea's KOSPI gained 0.35% and the Shanghai Composite Index closed up 0.44%.

S Kanagaraju