Wednesday, August 4, 2010

KLCI snaps 8 days of gains

KUALA LUMPUR: Stocks on Bursa Malaysia closed lower for the second consecutive day on Wednesday, Aug 4 in line with Wall Street's weak overnight performance.'' ''

At 5pm, the FBM KLCI was down 1.09 points to 1,362.74, snapping its eight day of gains as investors took profit and the upward trend lost momentum. The 30-stock FBM KLCI opened 0.32 point lower at 1,363.51 and it was trading between 1,359.19 and 1,364.05.

On Wall Street, US stocks slipped on Tuesday, as Dow component Procter & Gamble Co.'s lacklustre results, coupled with weaker-than-estimated data on consumer spending and housing, prompted investors to exercise caution a day after the market's 2% rally.

An analyst said stocks on Bursa Malaysia traded lower since the early session on profit taking, led by finance and gaming counters like CIMB and Genting while buying interest was seen in oil and gas as well as utilities.

"Bargain hunting in some sectors supported the market today," said Maybank Investment Bank Vice President and Head of Retail Lee Cheng Hooi.

During this time, investors should change their portfolios by focusing on laggard stocks, he said.

OSK Research said the local market would consolidate given its recent strong uptrend but the immediate technical outlook of the FBM KLCI remained bullish.

The Finance Index dropped 20.6 points to 12,284.53, the PLANTATION [] Index rose 15.59 points to 6,431.36 and the INDUSTRIAL INDEX [] fell 0.6 points to 2,671.09.

The FBM Emas Index declined 1.25 points to 9,231.54, the FBM70 [] Index added 4.04 points to 9,224.1 and the FBM Ace Index went up 7.53 points to 3,822.54.

Market breadth was negative with losers leading gainers 363 to 322 while 286 counters were unchanged. Volume fell to 811.414 million shares worth RM1.188 billion. - Bernama/Edge FD

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