Friday, June 4, 2010

Regional markets slip in early trade

KUALA LUMPUR: Regional markets, including FBM KLCI, fell in early trade on Tuesday, June 1, given the lack of direction with Wall Street closed on Monday, and the lingering euro zone debt crisis that has weighed on investor sentiment in Asia.

At mid-morning, Japan's Nikkei 225 fell 0.84% to 9,686.48, the Shanghai Composite Index lost 0.94% to 2,567.74, the South Korean Kospi down 0.85% to 1,627.23, Singapore's Straits Times Index fell 0.66% to 2,733.83 while Hong Kong's Hang Seng Index opened 0.8% lower at 19,600.57.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Tuesday said that whilst markets in Asia have reacted positively over the last two trading days, the European sovereign debt problems have not gone away.

Short-term market liquidity has returned to buy up oversold stocks that have plunged over the last fortnight, he said.

"Maintain a wary eye over Europe, and clients should protect their positions with a relevant stop-loss (in case of any further blow ups in Europe that will affect Asia-Pacific markets including Malaysia).

"Do not be lulled into a false sense of complacency as the massive European debt problems still persist," he said.

At Bursa Malaysia Securities, the FBM KLCI fell 7.45 points to 1,277.56 at 10.05am, dragged by losses at key blue chips including Tanjong, BAT, YTL and Maybank.

Losers thumped gainers by 224 to 89, while 145 counters traded unchanged. Volume was 201.68 million shares valued at RM70.86 million.

Tanjong was the top loser, falling 50 sen to RM17.50, BAT lost 24 sen to RM43.94, YTL down 18 sen to RM7.16 while Maybank declined nine sen to RM7.25.

Other major losers included Tenaga, Kossan, GUH Holdings, Harbour-Link and Far East Holdings.

Kenmark was the most actively traded stock in early trade with 90.6 million shares done. The counter fell 4.5 sen to 6 sen after it resumed trade Tuesday.

Its share price tumbled on Monday after top officials of the company went missing, leaving suppliers and at least two local financial institutions that had extended loans amounting to at least RM72 million high and dry.

Kenmark's independent directors Zainab Abu Bakar and Yeunh Wee Tiong on Monday informed Bursa Securities managing director James Hwang and deputy general manager Goh Kim Chon have resigned from the company.

Other actives in early trade included Talam, Saag, E&O, KNM and Green Packet.

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