KLCI retreats as profit taking halts rally



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KUALA LUMPUR (April 8): The FBM KLCI retreated in early trade today as some mild profit taking halted the really at the local bourse.

At 9am, the FBM KLCI fell 4.02 points to 1,852.49.

The top decliners included Petronas Gas Bhd, Kuala Lumpur Kepong Bhd, Hong Leong Bank Bhd, Genting Malaysia Bhd, CIMB Group Holdings Bhd, Hap Seng Consolidated Bhd, Guiness Anchor Bhd, Tenaga Nasional Bhd, IJM Corporation Bhd and Maxis Bhd.

Japanese shares were probing 15-year peaks Wednesday as investors favoured Asian assets on expectations of more stimulus from countries such as China and Japan, as well as a delayed start to any tightening by the U.S. Federal Reserve, according to Reuters.

The chase for yield in emerging markets overshadowed a flat finish for Wall Street, where a swing higher in the dollar was viewed as a threat to multinational corporations' profits. Oil prices also suffered a setback on data showing a jump in crude stockpiles, it said.

BIMB Securities Research in a markte preview today said that on earlier trading, key regional indexes ended mostly higher following overnight gain in the Wall Street.

It said Japan's Nikkei rose to a near two-week high as expectations that the U.S. Federal Reserve may wait longer before raising interest rates.

“Locally, the FBM KLCI rallied 13.57 points to 1,856.51, lifted mainly by gaming, O&G and banking counters.

“Trading participation saw net buying by foreign institutions while local institutions and retail were net sellers.

“Despite breaching our target of 1,850, we believe the local market shall continue its uptrend with continuous foreign inflow with immediate resistance at 1,860/65,” it said.