Wednesday, June 30, 2010

FBM KLCI extends losses in early trade

KUALA LUMPUR: Regional markets, including at Bursa Malaysia, started off in the red on Wednesday, June 30, following the overnight tumble at the US and European markets on Tuesday as concerns over the world economy as well as stability of European banks spooked investors.

At Bursa Malaysia, the FBM KLCI fell 12.94 points to 1,306.90 points at 9.05am, dragged by losses at key blue chips including Tanjong, Sime Darby, IOI Corp and KLK.

Losers led gainers by 140 to 28, while 61 counters traded unchanged.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in his daily technical outlook report on June 30 said that due to the USA's significantly weaker market action overnight, the FBM KLCI could be in a bearish mode today, with some late local nibbling activities that may cushion the initial fall.'' ''

The FBM KLCI had peaked at its previous high of 1,349.92 points, he said.

"Trading opportunities then emerged with the Bullish Engulfing candlestick low at 1,243.86 points on 27 May 2010. With the Bearish Engulfing candlestick pattern formed on Tuesday, we believe that downside volatility will emerge for the FBM KLCI.

"We advise clients to remain cautious as the global news flow has turned negative and there is a plethora of bad news that will affect global equity markets," said Lee.

Among the major losers, BAT fell 98 sen to RM43.60, PPB down 34 sen to RM15.86, Tanjong 20 sen to RM17.60, Sime Darby 14 sen to RM7.88 and IOI Corp 13 sen to RM4.94.

KLK and Top Glove fell 12 sen each to RM16.32 and RM13.60, Hong Leong Bank and Bursa 11 sen each to RM8.52 and RM7.07, while MISC fell 10 sen to RM8.52.


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