Monday, June 7, 2010

FBM KLCI starts week in the red

KUALA LUMPUR: The FBM KLCI opened in negative territory in early trade Monday, June 7, in line with key regional markets after disappointing US jobs data further spooked investors already worried about a potential debt crisis in Hungary and sent Wall Street to its lowest close since February.

At 9.05am, the FBM KLCI fell 14.40 points to 1,279.99, dragged by losses key blue chips including Public Bank and Maybank.

Losers beat gainers by 174 to 19, while 37 counters traded unchanged.

Among the major losers, KLK fell 42 sen to RM15.62, Tanjong and Public Bank lost 16 sen each to RM17.12 and RM11.42 while Maybank shed 13 sen to RM7.25.

Proton, YTL Corp and Genting fell 15 sen each to RM4.58, RM7.30 and RM6.81, respectively; Tan Chong lost 14 sen to RM4.15 and PPB Group fell 10 sen to RM15.70.

OSK Investment Research in a note on Monday said the sharp retracement experienced by the US market last Friday basically indicates that the US' market downtrend remains intact.

"As for the FBM KLCI, our view remains the same: that the near-term market outlook will remain bearish as long as it does not return back above the 1,307/1,308 point-level, which was the peak created in February 2010.

"Meanwhile, immediate resistance still lies at the 1,290-1,304 point-area, followed by the 1,307/1,308 point level," it said.

The research house said that to the downside, it was now looking at the 1,276-1,285 point-gap area as the immediate support.

Monday's gap area ranging from the 1,269 point-level to the 1,276 point-level would be the next support, it said.




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