FBM KLCI ends higher amid downbeat market tone

KUALA LUMPUR: The FBM KLCI finished in positive territory on Tuesday on last minute buying, but but overall market breadth remained downbeat.

At the closing, the market bellwether edged up 3.08 points, or 0.22% to 1,425.19. The index had earlier rose to its intraday high of 1,427.00.

Sellers led buyers by 562 to 329, while 387 counters traded unchanged. Volume was 2.57 billion shares, valued at RM1.55bil.

Regional equities were broadly lower. The MSCI’s Asia ex-Japan stock index was lower by 1.10%.

Japan’s Nikkei 225 advanced 0.09% to 28,620.07 while South Korea’s Kospi closed down 1.37%, at 2,489.02.

Hong Kong’s Hang Seng ended 1.71% lower at 19,617.88.

China’s CSI300 index fell 0.5% to 3,962.67 while the Shanghai Composite eased 0.32% to 3,264.87.

SPI Asset Management managing partner Stephen Innes said markets appear to experience the push-and-pull between how corporate executives and investors think about the economy and how the economy (and corporate earnings) are actually performing.

“This debate seemed to dominate much of last week's price action. And, with little in the way of scheduled news so far this week, that push and pull have continued with US stock futures trading in a rather tight range,” he said, adding that the earnings season has painted a reasonably constructive picture on the economy front.

However, there are some signs of cracks. With the regional bank’s turmoil having taken place only six weeks ago, it is still likely tricky to fully know how resulting tighter lending standards may impact growth in the future.

“But it is challenging to ascertain a clean read on anything happening this week.

“One of the most challenging things about navigating this bear market and the widely anticipated coming recession is that we’ve had to differentiate between real and nominal economic and market variables like nothing in recent decades,” he said.

At Bursa Malaysia, Nestle jumped RM1.90 to RM136.50, Hextar Technologies gained 82 sen to RM23.42, Kuala Lumpur Kepong added 44 sen to RM21.88 and PPB advanced 44 sen to Rm16.60.

Among the losers, BLD Plantation fell 50 sen to RM10.32, CI Holdings lost 23 sen to RM3.45, Pentamaster eased 22 sen to RM4.67 and United Plantations slid 14 sen to RM16.62.

Meanwhile, the ringgit was quoted at 4.4482, down 0.25% against the US dollar.

US West Texas Intermediate crude fell four cents to US$78.72and Brent lost eight cents to US$82.65 per barrel.