Friday, October 15, 2010

FBM KLCI dips ahead of Budget 2011

KUALA LUMPUR: The FBM KLCI opened in negative territory on Friday, Oct 15, ahead of the tabling of Budget 2011 later in the day.

The decline was in line with the cautious trading sentiment across regional markets after the slightly weaker close on Wall Street on concerns a widening foreclosure crisis could undermine the market's strength over the last five weeks.

At 9.10am, the 30-stock index was down 2.27 points to 1,494.11, dragged by losses including at Genting, CIMB and Maybank. Gainers led losers by 94 to 58, while 116 counters traded unchanged.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said due to the sideways tone in the USA last night, the FBM KLCI could be in a quiet mode on Friday, with minor blue chip and lower liner profit-taking activity on Budget Day 2010 on Friday.

"Traditionally and historically, there is usually profit-taking on Budget Day afternoon.

"The FBM KLCI broke above its previous peak of 1,479.59 recently and the subsequent 1,445.33-correction low was swiftly confirmed soon after. As such, trade with a short-term bias for most stocks over the next few weeks, using a relevant stop-loss level," he said in a note to clients on Friday.

Glove makers were among the early decliners on Bursa Malaysia, with Supermax down eight sen to RM4.43 and Top Glove down four sen to RM5.53; Genting fell six sen to RM10.14, CIMB and Maybank lost five sen each to RM7.95 and RM8.97 while Masterskill lost three sen to RM3.30.

Gainers included Batu Kawan, Uzma, Malaysia Smelting Corp, Mudajaya, S P Setia and Mah Sing.

CypARK RESOURCES BHD [] made a weak debut on the Main Market of Bursa Malaysia, and traded flat at RM1.10 with 5.4 million shares done.


No comments:

Post a Comment