KUALA LUMPUR: The FBM KLCI extended its losses in early trade on Thursday, Feb 24 in line with fluctuating key Asian markets and the weaker overnight close at Wall Street, as the Middle East unrest sent crude oil prices higher.
Analysts said developments in the Middle East, which spurred profit-taking that pulled the market from nine-month highs hit on Monday, would likely continue to sour investors' mood, according to Reuters.
US crude oil jumped to a 28-month high of US$100 a barrel on Wednesday as investors weighed the risk of Middle East unrest spreading from Libya to bigger exporters including Saudi Arabia, it said.
The FBM KLCI slipped 3.05 points to 1,508.06 at mid-morning, weighed by losses including at banking stocks and key blue chips.
Losers led gainers by 395 to 107, while 142 counters traded unchanged. Volume was 364.32 million shares valued at RM247.19 million.
At the regional markets, Japan's Nikkei 225 fell 0.42% to 10,534.55, Singapore's Straits Times Index down 0.26% to 2,994.02 and the Shanghai Composite Index slipped 0.09% to 2,860.01.
Meanwhile, Taiwan's Taiex rose 0.73% to 8,590.79, South Korea's Kospi up 0.14% to 1,964.35 and Hong Kong's Hang Seng Index opened 0.2% higher at 22,952.82.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Feb 24 said he expects the FBM KLCI to remain volatile in the short term and bearish in the medium term.
As a result, very short-term trading is the key to the markets, he said.
'We suggest that clients liquidate on rallies and remain more in cash (or in price defensive counters).
'Due to the global market malaise yesterday, we will see the FBM KLCI in a much weaker posture today. We expect the market to open lower initially (like yesterday) and local funds will try to bargain hunt the index up later,' he said.
Meanwhile, BIMB Securities Research said on Feb 24 that with the civil unrest in Libya showing no sign of receding and added with the incumbent leader vow to stay in power, the crude oil and hence, the global equity market may set for another negative tone today.
'Therefore, expect the local and regional market to embrace another selling pressure today as uncertainty in Middle East may taint the investors' confidence,' it said.
On Bursa Malaysia, IJM Coro was the top loser at mid-morning and fell 14 sen to RM5.84; Kulim lost 19 sen to RM3.78, Batu Kawan and KNM 18 sen each to RM15.80 and RM2.65, Malayan Flour Mills 17 sen to RM5.46, Keck Seng and TexCycle 16 sen each to RM6.61 and 28 sen, Bernas and Mamee 13 sen each to RM2.58 and RM3.50, while Axiata fell three sen to RM4.92.
Among banks, Public Bank fell 16 sen to RM13.08, CIMB three sen to RM8.16 while Maybank shed one sen to RM8.71.
Gainers in early trade included DiGi, Hartalega, Hong Leong Industries, Tasek, HLFG, APM Automotive, Texchem and Kretam.
Actives included Tanco, Tejari. Transmile, HWGB, Kumpulan Europlus and Mulpha.
Analysts said developments in the Middle East, which spurred profit-taking that pulled the market from nine-month highs hit on Monday, would likely continue to sour investors' mood, according to Reuters.
US crude oil jumped to a 28-month high of US$100 a barrel on Wednesday as investors weighed the risk of Middle East unrest spreading from Libya to bigger exporters including Saudi Arabia, it said.
The FBM KLCI slipped 3.05 points to 1,508.06 at mid-morning, weighed by losses including at banking stocks and key blue chips.
Losers led gainers by 395 to 107, while 142 counters traded unchanged. Volume was 364.32 million shares valued at RM247.19 million.
At the regional markets, Japan's Nikkei 225 fell 0.42% to 10,534.55, Singapore's Straits Times Index down 0.26% to 2,994.02 and the Shanghai Composite Index slipped 0.09% to 2,860.01.
Meanwhile, Taiwan's Taiex rose 0.73% to 8,590.79, South Korea's Kospi up 0.14% to 1,964.35 and Hong Kong's Hang Seng Index opened 0.2% higher at 22,952.82.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Feb 24 said he expects the FBM KLCI to remain volatile in the short term and bearish in the medium term.
As a result, very short-term trading is the key to the markets, he said.
'We suggest that clients liquidate on rallies and remain more in cash (or in price defensive counters).
'Due to the global market malaise yesterday, we will see the FBM KLCI in a much weaker posture today. We expect the market to open lower initially (like yesterday) and local funds will try to bargain hunt the index up later,' he said.
Meanwhile, BIMB Securities Research said on Feb 24 that with the civil unrest in Libya showing no sign of receding and added with the incumbent leader vow to stay in power, the crude oil and hence, the global equity market may set for another negative tone today.
'Therefore, expect the local and regional market to embrace another selling pressure today as uncertainty in Middle East may taint the investors' confidence,' it said.
On Bursa Malaysia, IJM Coro was the top loser at mid-morning and fell 14 sen to RM5.84; Kulim lost 19 sen to RM3.78, Batu Kawan and KNM 18 sen each to RM15.80 and RM2.65, Malayan Flour Mills 17 sen to RM5.46, Keck Seng and TexCycle 16 sen each to RM6.61 and 28 sen, Bernas and Mamee 13 sen each to RM2.58 and RM3.50, while Axiata fell three sen to RM4.92.
Among banks, Public Bank fell 16 sen to RM13.08, CIMB three sen to RM8.16 while Maybank shed one sen to RM8.71.
Gainers in early trade included DiGi, Hartalega, Hong Leong Industries, Tasek, HLFG, APM Automotive, Texchem and Kretam.
Actives included Tanco, Tejari. Transmile, HWGB, Kumpulan Europlus and Mulpha.
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