Wednesday, August 4, 2010

FBM KLCI down at mid-morning

KUALA LUMPUR: The FBM KLCI fell 3.11 points to 1,360.72 at 10am on Wednesday, Aug 4, in line with the overall weaker sentiment at regional markets following the lower overnight close on Wall Street following the weaker-than-estimated data on consumer spending and housing.

The Dow Jones Industrial Average fell 38 points, or 0.36%, to 10,636.38. The Standard & Poor's 500 Index shed 5.40 points, or 0.48%, to 1,120.46. The Nasdaq Composite Index lost 11.84 points, or 0.52%, to 2,283.52.

At key regional markets, Japan's Nikkei 225 fell 1.5% to 9.548.59, the South Korean Kospi down 0.47% to 1,782.13, Singapore's Straits Times Index lost 0.19% to 3,009.16 while Taiwan's Taiex shed 0.07% to 7,952.34.

However, the Shanghai Composite Index was 0.26% up at 2,633.75, while Hong Kong's Hang Seng Index opened 0.3% higher at 21,520.15.

On Bursa Malaysia, losers led gainers by 199 to 125, while 194 counters traded unchanged. Volume was relatively subdued with 123.87 million shares valued at RM133.29 million shares.

RHB Research Institute Sdn Bhd said that thanks to the last-minute push-up on selective heavyweights, the FBM KLCI survived the strong profit-taking day with a marginal gain on Tuesday.

Still, the record of the second "star-like" candle continued to point to further weakness ahead, it said.

Potentially, mild T+4 forced-selling activities can be expected on Wednesday due to heavy delivery on Tuesday, said the research house.

"However, we believe the market's setback, if any, will be limited and short-lived, as bargain-hunters are likely to re-emerge near the 10-day SMA of 1,353 and the strong resistance-turned-support at 1,350.

"Moreover, with the recent robust daily turnover, we are of the view that the positive trading sentiment would likely persist in the near term," it said.

As such, investors should stay bullish and look forward to a fast resumption of bargain-buying activities, it said in a note on Wednesday.

Among the major losers on the local stock exchange this morning, CIMB, Genting and Hong Leong Bank fell six sen each to RM7.39, RM7.88 and RM8.90, C I Holdings lost 15 sen to RM2.90, Panasonic eight sen to RM19.42 and Plenitude six sen to RM3.60.

Meanwhile, Ekovest, Parkson and Supermax lost seven sen each to RM1.75, RM5.50 and RM6.06 respectively.

Among the top gainers Wednesday morning, Nestle rose 20 sen to RM39, Aeon and Batu Kawan up 14 sen each to RM5.24 and RM11.70, Tomypak 11 sen to RM3.46 while Ann Joo and PPB added 10 sen each to RM2.65 and RM17.50.

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