FBM KLCI marginally higher

Shares on the Bursa Malaysia continued to drift sideways Thursday. Interest was somewhat lackluster with trading volume falling below that registered in the past few days.

The ambivalence is likely due to the lack of significant, market-moving new development. US stocks closed marginally lower overnight, offering no fresh leads. Meanwhile, key stock markets in the region traded broadly higher but gains were mostly limited. The Japanese stock market chalked up the strongest gains.

The Nikkei index surged 3.8% after the government voiced the possibility of intervening in the currency market. That pushed the Japanese currency lower against the greenback Thursday. The recent sharp rise in the yen against the US dollar, to a 14-year high, has hit shares for Japanese exporters. A strong yen will erode the country’s competitiveness in the global market as well as result in lower foreign earnings that are repatriated home.

On the local bourse, the FBM KLCI opened in positive territory but drifted lower as the day progressed. It slipped into the red after the midday break but recovered to close just one point higher at 1.272.4 points.

Market breadth, however, remained in the red. At the close, the number of losing stocks outpaced gaining ones by a ratio of roughly five to four.

The stock and warrants for Jerneh Asia were the top gainers for the day. The stock surged 21% to close at RM2.13 after the company received approval from Bank Negara to start negotiations to sell its 80% stake in Jerneh Insurance. Paramount Corp, which owns the remaining 20% equity stake, was also among the top gainers for the day. The stock closed 5.5% higher at RM3.07.

At the other end, BAT, Nestle, Tanjong plc, Batu Kawan and Kencana Petroleum were among the bigger losers for the day. Market volume dipped to less than 644 million shares. KNM was the most actively traded stock. Other actives include the warrants for Jerneh, Harvest Court and Hubline. — InsiderAsia