Thursday, July 22, 2010

FBM KLCI in the red

KUALA LUMPUR: The Malaysian equities benchmark began in negative territory in early trade on Thursday, July 22, following a substantial decline across US stocks in overnight trade.

Analysts foresee weakening upside momentum and a higher probability for profit-taking dip in the FBM KLCI following the gauge's weaker close off its high yesterday.

"Hence, as the index approaches the May 4 peak of 1,349.92, expect an increase in profit-taking and selling interest," TA Securities Holdings Bhd said.

At 9.33am on Thursday, the FBM KLCI fell 2.17 points or 0.2 % to 1,338.85. Across the exchange, a total of 148.29 million shares worth RM71 million changed hands, resulting in113 rising stocks versus 150 declining entities.

Notable stocks to watch include newly-listed steel products maker Tatt Giap Group Bhd whose shares rose three sen to 61 sen compared to its offer price of 58 sen per share.

Kenmark Holdings Bhd,.the most actively trade stock with some 28 million shares done, climbed 3.5 sen to 10 sen after the company said it had resumed its printing operations while its other divisions located in Port Klang have completed all outstanding orders.

Among major Asian stock indices, Japan's Nikkei 225 fell 0.76% to 9,208.20 while Australia's S&P/ASX 200 was down 0.17% to 4,405.20. South Korea's Kospi however, rose 0.03% to 1,749.34

US markets tumbled in overnight trade following comments by Federal Reserve chairman Ben Bernanke that the outlook for the world's largest economy was "unusually uncertain", fuelling concerns about the sustainability of the US macro landscape.

Bernanke's downbeat economic assessment slammed US stocks even after Morgan Stanley and Apple Inc easily beat Wall Street's earnings expectations.

The Wall Street bank and the tech bellwether, known for its iPhone and iPad, were the latest US corporations to turn in solid results in the second-quarter reporting season

The Dow Jones Industrial Average closed down 1.07% to 10,120.53, Nasdaq fell 1.58% to 2,187.33, while the S&P 500 shed 1.28% to 1,069.59.

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