Wednesday, November 10, 2010

FBM KLCI in the red on China inflation concerns

KUALA LUMPUR: Investors locked in their profits towards noon on Wednesday, Nov 10, sending the FBM KLCI into the red as stockmarkets in China tumbled.

This came against concerns that rising inflation may prompt Chinese lawmakers to initiative more measures to curb rising prices spurred by a'' surged in global liquidity.

The FBM KLCI which rose to a new all-time intraday high of 1,531.99,'' dipped 0.71 of a point at 1,525.82, at lunch break. There were 945 million shares transacted worth RM1.1 billion.'' There were 312 gainers versus 424 decliners.

Among regional market, the Shanghai Composite fell 1.12% to 3,100.04 while Hong Kong's Hang Seng was down 1.1% to 24,426.07.'' Concerns about China's economy had also spilled into Australian markets, resulting in the S&P / ASX 200 falling 1% to 4,691.40.'' China is a major buyer of Australian commodities.

Singapore's Straits Times Index fell 0.78% to'' 3,287.89.'' Japan's Nikkei 225 rose up 0.7% to 9763 .88, South Korea's Kospi added 0.2% to 1,952.14 while Taiwan's Taiex'' rose 0.1% to 8456.63.

At Bursa Malaysia, Genting fell 14 sen to RM10.66, dragging the FBM KLCI down 1.25 points.

Nestle was the top loser, down 40 sen to RM43.30. Petronas Dagangan shed 20 sen to RM11.30, Genting 14 to RM10.60 and Genting PLANTATION []s 13 sen to RM8.82. KLK shed 13 sen to RM8.82.

AMMB and PPB lost eight sen each to RM6.22 and RM19.32, Sime two sen to RM9.01 and MMC five sen to RM2.99.

Most active stocks include stockbroking firms TA ENTERPRISE BHD [], and OSK HOLDINGS BHD [], deemed proxies to a better performance across'' stockmarkets. TA was unchanged at 80 sen with about 37 million shares done while OSK climbed two sen to RM1.93 with about 28 million'' shares traded.

Shares of Scomi Group which rose 2.5 sen to 44 sen also saw active trading following speculation that a new major shareholders may come'' into the oil and gas support services firm.

The rise in crude palm oil (CPO) prices continue to grab market attention. OSK Research analyst Shin Kao Jack said the rapid'' appreciation of CPO prices over the last three weeks had reaffirmed the research house's view that the breakout from the RM2,800 a'' tonne'' level had substantially improved the futures market's technical landscape.

"Both near-term and mid-term technical outlook of the CPO market are now aligned with a bullish bias," Shin wrote in a note today.

Malaysian palm oil prices rose RM7 to RM3,370 a tonne for January 2011 delivery, compared to RM2,245 last July.

The rise in CPO prices has been boosted by supply constraints amid improving demand in major consumers China and India.

The ringgit was traded weaker at 3.0970 against the US dollar. Crude oil futures in the US traded near US$90 a barrel while spot prices for'' gold fell'' to US$1,396.50 an ounce. Gold prices had hit a high of US$1,424.60'' on Tuesday.


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