KUALA LUMPUR: The FBM KLCI fell the most in a week at the mid-day break on Thursday, Dec 16, in line with the decline at Southeast Asian bourses and the generally tepid investor sentiment at key regional markets.
Shrinking trading volumes in Asian equity markets have been a tell-tale sign that investors are heading to the sidelines for the rest of the year rather than expose their portfolios to more risks, according to Reuters.
However, Japanese stocks continued to outperform thanks to foreign investment, it said.
On Bursa Malaysia, the 30-stock FBM KLCI fell 0.78% or 11.82 points to 1,497.28, as key blue chips including banking and PLANTATION [] stocks declined.
Losers beat gainers by 460 to 155, while 266 counters traded unchanged. Volume was 585.61 million shares valued at RM717.88 million.
The ringgit weakened 0.0.16% to 3.1399 versus the US dollar; crude palm oil for the third month delivery fell RM24 per tonne to RM3,590, crude oil slipped nine cents per barrel to US$88.53 (RM277.98) while gold added 15 US cents per troy ounce to US$1,380.98.
At the regional markets, Japan's Nikkei 225 edged up 0.01% to 10,310.97, the Shanghai Composite Index up 0.20% to 2,917.21, Taiwan's Taiex rose 0.24% to 8,777.76, and Singapore's Straits Times Index added 0.21% to 3,153.73.
Meanwhile, Hong Kong's Hang Seng Index lost 0.27% to 22,912.71, South Korea's Kospi down 0.40% to 2,009.40, the Jakarta Composite Index slumped 1.76% to 3,593.89 and Thailand's SET was down 0.35% to 1,031.84.
RHB Research Institute Sdn Bhd in a note on Thursday said thanks to the routine late supportive buying on the core blue chips, the FBM KLCI was saved from falling below the 10-day SMA of 1,506 on Wednesday.
However, the small push was not enough to attract potential buying activities to trigger a recovery move to rechallenge the critical resistance at 1,524 and 1,532, it said.
The research house said that in fact, the index's continuous negative technical readings are pointing to a likely follow-through selling pressure ahead.
This means the index is poised to head lower, potentially losing the key 10-day Simple Moving Average (SMA), 40-day SMA and the psychological level of 1,500.
"As such, we expect more negative outlook on the FBM KLCI's immediate-term trend to revisit 1,474 recent low and the key level at 1,450.
"Coupled with the uncertainties on the refreshed European debt crisis, and the risk of more tightening measures from Beijing, trading sentiment is likely to stay lukewarm in the local scene," it said.
On Bursa Malaysia, among the heavyweights, CIMB lost 17 sen to RM8,53, Genting fell 10 sen to RM10.66, Axiata down eight sen to RM4.60, Maybank and IOI Corp lost six sen each to RM8.49 and RM5.74 respectively, Tenaga fell nine sen to RM8.30, Genting Malaysia and Gamuda down five sen each to RM3.34 and RM3.69 respectively, while KLK fell 28 sen to RM21.08.
Other decliners included Sindora, BAT, Petronas Dagangan, Batu Kawan, Bintulu Port, Top Glove, DFZ Capital and S P Setia.
Gainers on Thursday morning included MTD Capital, Far East Corp, Perstima, Guan Chong, Hap Seng, Kuchai and Chin Teck.
The actives included KNM, SAAG, Karambunai, Scomi, Ho Wah Genting and LCL Corp.
Shrinking trading volumes in Asian equity markets have been a tell-tale sign that investors are heading to the sidelines for the rest of the year rather than expose their portfolios to more risks, according to Reuters.
However, Japanese stocks continued to outperform thanks to foreign investment, it said.
On Bursa Malaysia, the 30-stock FBM KLCI fell 0.78% or 11.82 points to 1,497.28, as key blue chips including banking and PLANTATION [] stocks declined.
Losers beat gainers by 460 to 155, while 266 counters traded unchanged. Volume was 585.61 million shares valued at RM717.88 million.
The ringgit weakened 0.0.16% to 3.1399 versus the US dollar; crude palm oil for the third month delivery fell RM24 per tonne to RM3,590, crude oil slipped nine cents per barrel to US$88.53 (RM277.98) while gold added 15 US cents per troy ounce to US$1,380.98.
At the regional markets, Japan's Nikkei 225 edged up 0.01% to 10,310.97, the Shanghai Composite Index up 0.20% to 2,917.21, Taiwan's Taiex rose 0.24% to 8,777.76, and Singapore's Straits Times Index added 0.21% to 3,153.73.
Meanwhile, Hong Kong's Hang Seng Index lost 0.27% to 22,912.71, South Korea's Kospi down 0.40% to 2,009.40, the Jakarta Composite Index slumped 1.76% to 3,593.89 and Thailand's SET was down 0.35% to 1,031.84.
RHB Research Institute Sdn Bhd in a note on Thursday said thanks to the routine late supportive buying on the core blue chips, the FBM KLCI was saved from falling below the 10-day SMA of 1,506 on Wednesday.
However, the small push was not enough to attract potential buying activities to trigger a recovery move to rechallenge the critical resistance at 1,524 and 1,532, it said.
The research house said that in fact, the index's continuous negative technical readings are pointing to a likely follow-through selling pressure ahead.
This means the index is poised to head lower, potentially losing the key 10-day Simple Moving Average (SMA), 40-day SMA and the psychological level of 1,500.
"As such, we expect more negative outlook on the FBM KLCI's immediate-term trend to revisit 1,474 recent low and the key level at 1,450.
"Coupled with the uncertainties on the refreshed European debt crisis, and the risk of more tightening measures from Beijing, trading sentiment is likely to stay lukewarm in the local scene," it said.
On Bursa Malaysia, among the heavyweights, CIMB lost 17 sen to RM8,53, Genting fell 10 sen to RM10.66, Axiata down eight sen to RM4.60, Maybank and IOI Corp lost six sen each to RM8.49 and RM5.74 respectively, Tenaga fell nine sen to RM8.30, Genting Malaysia and Gamuda down five sen each to RM3.34 and RM3.69 respectively, while KLK fell 28 sen to RM21.08.
Other decliners included Sindora, BAT, Petronas Dagangan, Batu Kawan, Bintulu Port, Top Glove, DFZ Capital and S P Setia.
Gainers on Thursday morning included MTD Capital, Far East Corp, Perstima, Guan Chong, Hap Seng, Kuchai and Chin Teck.
The actives included KNM, SAAG, Karambunai, Scomi, Ho Wah Genting and LCL Corp.
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