Wednesday, February 16, 2011

FBM KLCI pares down losses at mid-morning

KUALA LUMPUR: The FBM KLCI pared down its losses and clawed back to rise above the psychologically crucial 1,500-point level at mid-morning on Wednesday, Feb 16, as most key regional markets made slight gains.

At 10am, the FBM KLCI was down 4.20 points to 1,501.13, weighed by losses at banking stocks and select blue chips.

The index had earlier fallen to a low of 1,495.43.

Gainers trailed losers by 295 to 172, while 242 counters traded unchanged. Volume was 425.61 million shares valued at RM332.77 million.

At the regional markets, Japan's Nikkei 225 added 0.39% to 10,788.13, Taiwan's Taiex up 0.245 to 8,742.67, the Shanghai Composite Index added 0.16% to 2,903.76 and Hong Kong's Hang Seng Index opened 0.3% higher at 22,972.77.

Meanwhile, Singapore's Straits Times Index lost 0.24% to 3,073.23 and South Korea's Kospi slipped 0.01% to 2,010.35.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Feb 16 said he anticipates the index 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 clients liquidate on rallies and remain more in cash (or in price defensive counters). Obvious foreign selling in the Asia-Pacific region is due to hedge fund carry-trade unwinding.

'Also, foreign funds that have made money here in the region have been repatriating funds to Europe and USA since late last year. Due to the lower US markets last night, we may see the FBM KLCI in a softer posture today,' he said.

Banking stocks weighed on the FBM KLCI, with CIMB falling 13 sen to RM8.07, Public Bank down 10 sen to RM13, Maybank eight sen to RM8.46, whiel AMMB and RHB Capital fell four sen each to RM6.23 and RM7.97.

Other losers included Lafarge Malayan Cement that fell 13 sen to RM7.45, Parskon 11 sen to RM5.46, BLD PLANTATION []s and IGB 10 sen each tp RM5.20 and RM2.22, while Hirotako and Masterskill lost eight sen each to RM1.81 and RM1.88.

Gainers in early trade included BAT, Kulim, Mamee, Panasonic, Uzma, KrisAssets, DiGi and Petronas Chemicals.

The actives included Jotech, Ho Wah Genting, Mobif, Ramunia and Dutaland's warrants.

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