Bursa Malaysia (KLSE) still frayed on first day of the week

KUALA LUMPUR: Investor interest in the local bourse was still weak at the start of the new week. Market volume remained relatively thin as investors opt for a wait and see attitude. There was no major movement, either way. Even firmer sentiment in key regional markets failed to lure many back into the fray.

Asian stock markets traded mostly higher on Monday. Share prices were likely bolstered by bargain hunting activities following last week's sell off - and the absence of any strong fresh lead. The US stock market was closed last Friday for the Independence Day celebrations.

Nevertheless, investors, by and large, are more than likely to stay jittery in the coming days. Market observers will be looking to the upcoming US corporate reporting season for clues on how businesses fared in the last quarter. More importantly, they will be poring over guidance and forecast statements from these companies on the outlook for the rest of the year.

The KL Composite Index opened in tentative trading before sellers gained the upper hand. Market breadth fell into the red, where it stayed for the rest of the day. The benchmark index was also in negative territory for the better part of the day.

Gamuda was, by far, the most heavily traded counter Monday. The stock gained 8.8% to RM2.47 on the back of news reports that it may be a takeover target for private equity investors. There were also speculations the company may be taken private. Gamuda was also one of the big gainers for the day.

The rest of the market remained thinly traded. Total market volume came up to about 413 million shares. At the close, there were seven losing stocks for every five gaining ones. The KLCI ended the day nearly seven points lower at 1,127.3 points. Leading the big losers were blue chips such as KL Kepong, PPB, Tanjong plc and Public Bank-foreign.