Tuesday, December 14, 2010

FBM KLCI slips at mid-morning

KUALA LUMPUR:'' The FBM KLCI slipped into negative territory at mid-morning on Tuesday, Dec 14 as some mild profit taking emerged, while regional markets were mostly mixed on cautious trade.

On Bursa Malaysia, the FBM KLCI shed 0.17 point to 1,509.62 at 10am. The broader market, however, was positive with gainers leading losers by 238 to 188, while 218 counters traded unchanged. Volume was 273.63 million shares valued at RM237.32 million.

At the regional markets, Taiwan's Taiex was up 0.49% to 8,779.55, South Korea's Kospi gained 0.33% to 2,003.17, Singapore's Straits Times Index edged up 0.05% to 3,184.07, Japan's Nikkei 225 was flat at 10.293.97, the Shanghai Composite Index slipped 0.15% to 2,918.56 while Hong Kong's Hang Seng Index opened 0.6% higher at 23,451.40.

RHB Research Institute Sdn Bhd in a note Dec 14 said that as expected, the FBM KLCI continued to move lower even after a strong opening in early trading yesterday, due to constant unloading of stocks on a 'sell into strength' strategy adopted by fund managers.

It said closed with a 'harami' candle and the mixed momentum readings on Monday, the FBM KLCI was unlikely to launch a powerful rally to re-challenge the key resistance level at 1,524 and the historical level of 1,531.99 soon.

'In fact, we see a constant risk of the index falling below the 1,500 psychological level and 10-day and 40-day Simple Moving Averages nearby, should the profit-taking activities persist in the near term.

'As a result, we continue to stay negative and expect the index to see more pressure on the downside. Losing the 1,500 level will exaggerate the selling momentum, hence pressing the index steeply lower to the recent low of 1,474 and the 1,450 level soon,' it said.

The top loser at mid-morning was BAT that fell 88 sen to RM45.66; KYM lost 26 sen to RM2.74, Glenealy fell 20 sen to RM5.20, and Dutch Lady and TSM fell 10 sen each to RM17.80 and RM4.02.

Meanwhile, SapuraCrest call warrants, SabCres-CC plunged in early trade in the absence of any negative news while the mother shares advanced.
SapCres-CC fell 26 sen to 29 sen, while Sapcres gained eight sen to RM2.97.

PLANTATION []-related stocks were among the early gainers, with KLK up 24 sen to RM21.80, Sarawak Oil Palms up and Kulim up 12 sen each to RM4.05 and RM12.66, while TH Plantations added nine sen to RM1.70.

Other gainers included Tradewinds, BHIC, Kuchai, Sungei Bagan, KNM and Alam Maritim.

Olympia was the most actively traded counter at mid-morning with 17.7 million shares done. The stock rose one sen to 32.5 sen.

Duta Yap's Olympia is hoping to offer RM2.25 billion to take over Pan Malaysia Pools Sdn Bhd from Tanjong plc. Olympia confirmed it was constantly seeking investment opportunities to complement its businesses though it had yet to make a formal offer.

Other actives in early trade included L&G, Karambunai, Petra Perdana, Carotech, KUB and ECM.

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