Tuesday, November 30, 2010

FBM KLCI slips into the red at mid-morning

KUALA LUMPUR: The FBM KLCI slipped into the red in early trade on Tuesday, Nov 30, in line with the overnight decline at Wall Street and the still cautious sentiment across regional markets.

At 10am, the 30-stock index was down 1.67 points to 1,494.28, weighed by losses including at Public Bank, Maybank, Genting and Petronas Chemicals.

Losers edged gainers by 206 to 187, while 188 counters traded unchanged. Volume was 218.52 million shares valued at RM215.94 million.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note Nov 30 said the January and May 2010 downturn periods in the global markets also affected Malaysia, adding that there could be another similar downward period emerging for the world markets.

Due to the lower US markets last night, the FBM KLCI could be in an initially softer mode today, with selling activities that may see late selective local buying activities to maintain the FBM30 [] index mainly, he said.

Lee said the FBM KLCI had broken above the previous 1,524.69 all-time 2008 high to create another new peak at 1,531.99 on Nov 10, and that a correction low may have been formed next at 1,474.02 on Nov 29.

'Global market trends may have turned volatile, but some confidence appears to have returned to the local bourse since last Wednesday and yesterday.

'The local market is still unstable with poor breadth. As such, intraday trade if the market dips but sell on strength at (or near) close,' he said.

QSR was the top loser at mid-morning and fell 58 sen to RM5.68, while its parent Kulim lost 30 sen to RM11.78 and KFCH lost eight sen to RM3.86 after the rejection of the takeover offers for QSR.

Public Bank and Gamuda fell four sen each to RM12.80 and RM3.69, Maybank, Petronas Chemicals and Genting lost two sen each to RM8.66, RM5.38 and RM10.20 respectively, Padini and Manulife fell 12 sen each to RM4.86 and RM3, while Hong Leong Bank slipped 11 sen to RM9.19.

Gainers this morning included Tasek, KLK, Boustead, Nestle, Paramount, Guinness Anchor and Batu Kawan.

SAAG was the most actively traded counter at mid-morning with 27.7 million shares done. The stock added half a sen to 7.5 sen. Other actives included KNM, Karambunai, Hovid, Ramunia and Petronas Chemicals.

At the regional markets, Taiwan's Taiex was up 0.69% to 8,424.79, the South Korean Kospi added 0.65% to 1,907.83, Singapore's Straits Times Index up 0.10% to 3,161.29, the Shanghai Composite Index edged up 0.02% to 2,867.03 but Hong Kong's Hang Seng Index opened 0.2% lower at 23,123.95.

Meanwhile, Japan's Nikkei 225 slipped 0.41% to 10,084.46, after the country's factory output fell in October by the most since February 2009,A leading indicator of export orders marked the biggest fall in a year and a half in November, while the jobless rate rose and household spending slumped, suggesting that the economy's expected return to growth early next year will be slow and tenuous, according to Reuters.

The weak batch of data will also keep the Bank of Japan under pressure to maintain its very loose monetary policy, it said.

Japan's industrial output fell 1.8% in October, government data showed on Tuesday, less than a median estimate for a 3.25% fall but marking the fifth straight month of declines.


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