Thursday, August 12, 2010

FBM KLCI stays in the red at mid-day break

KUALA LUMPUR: Asian markets remained in the red on Thursday, Aug 12, with the FBM KLCI at its lowest level since July 23 and Japan's Nikkei 225 falling more than 2% in early trade to on worries of a slowdown in the global economy.

Japan's industrial output fell 1.1% in June for the first decline in four months, revised data showed on Thursday, suggesting production may be cooling off as exports slow, according to Reuters.

The figure compared with an initial reading of a 1.5% fall, and followed a 0.1% increase in May, it said.

At the regional markets, the Nikkei was down 1.84% to 9,121.43, Hong Kong's Hang Seng Index fell 1.56% to 20,962.60, the South Korean Kospi lost 1.22% to 1,736.71, Taiwan's Taiex down 1.10% to 7,808.55, Singapore's Straits Times Index shed 0.97% to 2,920.78 while the Shanghai Composite Index shed 0.75% to 2,587.93.

On Bursa Malaysia, the FBM KLCI fell 7.85 points to 1,345.06, dragged by losses including at DiGi, Petronas Dagangan, PPB and Petronas Gas.

Losers beat gainers by 443 to 134, while 218 counters traded unchanged. Volume was 351 million shares valued at RM505.8 million.

Crude palm oil for the third month delivery rose RM4 per tonne to RM2,260; gold added US$1.45 per ounce to US$1,199.55 (RM3,826.57) while crude oil slipped 46 cents per barrel to US$77.56.

RHB Research Institute said Wednesday's decline to below the 10-day SMA of 1,361 indicated a decisive breakdown of the short-term technical picture.

Although the FBM KLCI managed to close at above the 1,350, off the day low of 1,349.50 Wednesday, the technical readings remained weak overall, it said.

"Closing with a bearish candle below the SMA suggests a negative short-term performance is likely on Thursday. Plus the poorer daily turnover, and the overnight Wall Street's plunge, the risk is high for the index to lose the critical 1,350 level in the immediate term.

"If this occurs, it will mean a confirmation of a bearish breakdown from the recent uptrend. That will lead the index towards the 40-day SMA of 1,336, followed by the psychological support of 1,300," it said.

Among the major losers on Bursa Malaysia, BAT fell 60 sen to RM43.50, DiGi fell 50 sen to RM23.86, Nestle lost 48 sen to RM38.52 while Petronas Dagangan and F&N lost 36 sen each to RM10.04 and RM13.54.

PPB fell 28 sen to RM17.28, Tasek down 27 sen to RM6.70, Hong Leong Financial Group lost 17 sen to RM8.36, Cocoaland down 15 sen to RM2.40 while Petronas Gas shed 14 sen to RM10.10.

Among the top gainers, Pharmaniaga and Jerneh added 20 sen to RM5.64 and RM3.39, Cycle & Carriage up 10 sen to RM5.90, AIC rose 9.5 sen to 70.5 sen, Mieco up eight sen to 70 sen, HPI rose seven sen to RM1.72 while AIRB added six sen to RM1.37.

Talam was the most actively traded stock with 32.3 million shares done. The counter shed half a sen to 10.5 sen. Other actives included Samudra, Timecom, Mieco, AirAsia, SAAG and Axiata.


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