KUALA LUMPUR: Asian markets mostly kicked off the second half of 2010 in the red due to weak investor sentiment on the back of lingering worries about the global economic growth prospects, as Moody's said it may downgrade Spain's credit rating.
Overnight on Wall Street, US stocks staggered to the end of a dismal second quarter on Wednesday, June 30, in another low volume session as investors found little reason to take on risk after conflicting economic data, according to Reuters.
The Dow Jones Industrial Average dropped 96.28 points, or 0.98%, to 9,774.02 points. The Standard & Poor's 500 Index slid 10.53 points, or 1.01%, to 1,030.71 points. The Nasdaq Composite Index fell 25.94 points, or 1.21%, to 2,109.24 points.
For the second quarter, the Dow fell 10%, the S&P 500 lost 12% and the Nasdaq dropped 12% as worry about Europe's sovereign debt and the sustainability of the US economic recovery caused investors to pull back from the most recent closing highs hit in late April. These losses put Wall Street in correction mode as the second quarter ended
At mid-morning Thursday, the FBM KLCI slipped 2.65 points to 1,311.37 points. Losers edged gainers by 159 to 100, while 153 counters traded unchanged. Volume was relatively thin with 77.2 million shares valued at RM117.52 million.
MIDF Research in its 3Q10 outlook strategy was more optimistic on the prospects for the local stock market, and said it was maintaining its FBM KLCI upper-band target of 1,450 points for the year, based on price-earnings multiple of 18 times EPS10 and 16 times EPS11.
This is based on the expected earnings growth of KLCI-component stocks of 14.1% in FY10 and 15.2% in FY11, it said.
"We are maintaining our positive outlook on the Banking, CONSTRUCTION [], Media, Automotive, Oil & Gas, Power & Utilities, Healthcare and Aviation sectors.
"We have a neutral outlook on the rest of the sectors and our upbeat assessment of the market is manifested by the fact that we do not have any negative sector calls,' it said in its report July 1.
At the regional markets at 10am, Japan's Nikkei 225 fell 1.94% to 9,200.42 points, the South Korean Kospi down 0.97% to 1,681.75 points, Taiwan's Taiex down 0.54% to 7,289.94 points and Singapore's Straits Times Index lose 0.51% to 2,821.09 points.
At Bursa Malaysia, BAT fell 10 sen to RM43.90; UMW, MISC and PPB fell eight sen each to RM6.25, RM8.25 and RM15.90, respectively while KLK fell six sen to RM16.36.
Other losers included Lafarge Malayan Cement, George Kent, Malaysian Mosaics and Sarawak Oil Palms.
Among the gainers, Genting, KFCH and Tanjong added six sen each to RM7.19, RM10.18 and RM17.50, respectively; United Malacca up 11 sen to RM9.09, while SEG International and Faber added six sen each to RM4.29 and RM2.73, respectively.
Time was the most actively traded counter with 5.25 million shares done. The stock was unchanged at 39 sen. Other actives included AWC, Kumpulan Europlus, AMMB and Green Packet.
Overnight on Wall Street, US stocks staggered to the end of a dismal second quarter on Wednesday, June 30, in another low volume session as investors found little reason to take on risk after conflicting economic data, according to Reuters.
The Dow Jones Industrial Average dropped 96.28 points, or 0.98%, to 9,774.02 points. The Standard & Poor's 500 Index slid 10.53 points, or 1.01%, to 1,030.71 points. The Nasdaq Composite Index fell 25.94 points, or 1.21%, to 2,109.24 points.
For the second quarter, the Dow fell 10%, the S&P 500 lost 12% and the Nasdaq dropped 12% as worry about Europe's sovereign debt and the sustainability of the US economic recovery caused investors to pull back from the most recent closing highs hit in late April. These losses put Wall Street in correction mode as the second quarter ended
At mid-morning Thursday, the FBM KLCI slipped 2.65 points to 1,311.37 points. Losers edged gainers by 159 to 100, while 153 counters traded unchanged. Volume was relatively thin with 77.2 million shares valued at RM117.52 million.
MIDF Research in its 3Q10 outlook strategy was more optimistic on the prospects for the local stock market, and said it was maintaining its FBM KLCI upper-band target of 1,450 points for the year, based on price-earnings multiple of 18 times EPS10 and 16 times EPS11.
This is based on the expected earnings growth of KLCI-component stocks of 14.1% in FY10 and 15.2% in FY11, it said.
"We are maintaining our positive outlook on the Banking, CONSTRUCTION [], Media, Automotive, Oil & Gas, Power & Utilities, Healthcare and Aviation sectors.
"We have a neutral outlook on the rest of the sectors and our upbeat assessment of the market is manifested by the fact that we do not have any negative sector calls,' it said in its report July 1.
At the regional markets at 10am, Japan's Nikkei 225 fell 1.94% to 9,200.42 points, the South Korean Kospi down 0.97% to 1,681.75 points, Taiwan's Taiex down 0.54% to 7,289.94 points and Singapore's Straits Times Index lose 0.51% to 2,821.09 points.
At Bursa Malaysia, BAT fell 10 sen to RM43.90; UMW, MISC and PPB fell eight sen each to RM6.25, RM8.25 and RM15.90, respectively while KLK fell six sen to RM16.36.
Other losers included Lafarge Malayan Cement, George Kent, Malaysian Mosaics and Sarawak Oil Palms.
Among the gainers, Genting, KFCH and Tanjong added six sen each to RM7.19, RM10.18 and RM17.50, respectively; United Malacca up 11 sen to RM9.09, while SEG International and Faber added six sen each to RM4.29 and RM2.73, respectively.
Time was the most actively traded counter with 5.25 million shares done. The stock was unchanged at 39 sen. Other actives included AWC, Kumpulan Europlus, AMMB and Green Packet.
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