Wednesday, July 7, 2010

Short-lived rebound

KUALA LUMPUR: Asian markets, including Bursa Malaysia, gave up some of their gains at midday on Wednesday, July 7, with investor sentiment dominated by concerns of the long-term global economic prospect as well as the resiliency of the US economy.

A rebound in world stock markets on Tuesday, mainly propelled by bargain-hunting, turned out to be short-lived as data showed growth in the U.S. service sector was slowing, the latest evidence that its expansion was cooling, according to Reuters.

Wall Street managed modest gains despite the data, but strong buying interest disappeared by afternoon as bearish sentiment reasserted itself, it said.

At Bursa Malaysia, the FBM KLCI fell 1.63 points to 1,305.45 at the mid-day break. Losers led gainers by 263 to 166, while 237 counters traded unchanged. Volume was 257.61 million shares valued at RM327.53 million.

Crude palm oil for the third month delivery fell RM5 per tonne to RM2,277, the lowest since November; crude oil gained 7 cents per barrel to US$72.05 while gold rose 57 cents per ounce to US$1,193.20 at noon.

Hang Seng Index -1.14% 19,856.09 Nikkei 225 -1.03% 9,241.43 Kospi -0.63% 1,674.35 Taiex Index -0.41% 7,517.68 Shanghai Composite Index -0.17% 2,405.25 Singapore's Straits Times Index -0.01% 2,867.59
On Bursa, RHB Research Institute Sdn Bhd said the FBM KLCI must sustain at above 1,300 to regain buying support
It said given the timely recovery on the FBM KLCI to above the critical 1,300 psychological level, fuelled by the sudden change in trading sentiment in the local futures market and the overseas indices, the recent selling mode may take a breather.

However, it was still premature at this stage for the market to turn back into a bullish scenario, it said in a note July 7.

'All said, should it fall back to below 1,300 points in the immediate term, due to the possible resumption of selling pressure in the volatile US markets, it will relaunch the selling mode and pressure the index towards the crucial 1,250-point support level,' said RHB Research.

Among the major losers were Petronas Dagangan, down 14 sen to RM9.39, YTL Corp lost six sen to RM7.36, IOI Corp, MISC and Berjaya Sports Toto fell five sen each to RM5, RM8.56 and RM4.11, respectively, while Genting Malaysia fell three sen to RM2.59.

Tanjong and Public Bank fell two sen each to RM17.48 and RM11.90, and CIMB shed one sen to RM6.99.
Other decliners included Shell, Hong Leong Bank, Dayang and SEG International.

LPI Capital was the top gainer, up 18 sen to RM16.14, PPB gained 16 sen to RM16.10, APM Automotive 15 sen to RM4.22 and Tomypak up 13 sen to RM3.48. Other gainers included Genting PLANTATION []s, NSTP, Allianz and Faber.

AirAsia was the most actively traded stock with 17.64 million shares done. The counter was unchanged at RM1.32.'' Other actives included SAAG, Sinotop, Maxbiz, Kenmark and Kumpulan Europlus.




No comments:

Post a Comment