Friday, February 11, 2011

KLCI falls nearly 10 pts to lowest since Dec 20 on selling of banks

KUALA LUMPUR:'' The FBM KLCI fell for the third consecutive day on Friday, Feb 11 and was at its lowest level since Dec 20 last year, weighed by losses at banking and index-linked PLANTATION [] stocks as foreign investors continued to sell down stocks.

The decline of the FBM KLCI was in tandem with the losses at most key regional markets, where Taiwan's Taiex slumped 2.6% and South Korea's Kospi fell 1.6%.

The FBM KLCI fell 0.63% or 9.47 points to close at 1,494.52. Losers trounced gainers by 635 to 206, while 271 counters traded unchanged. Volume declined to 1.68 billion valued at RM2.41 billion.

MIDF Research head Zulkifli Hamzah said as expected, the selldown by foreign investors continued on Friday and that it would probably take a few more days for the selling to unwind before price stabilise.

'On some technical angle, such as the RSI, the market is already in the oversold territory. However, this can persist for a while which is a good opportunity to accumulate in our opinion,' he said.

Zulkiflli said there was strong buying by local institutions on Friday and that should mitigate further downside in the market.

'Next week's 4Q10 GDP growth will be announced on Friday, and that should show a deceleration of growth rate in the last quarter.

'If that is a cue that the authority will let easy monetary condition to prevail, the equity market should rebound,' he said.

At the regional markets, Taiwan's Taiex fell 2.57% to 8,609.86, South Korea's Kospi lost 1.56 to 1,977.19 and Singapore's Straits Times Index was down 0.60% to 3,084.92.

Hong Kong shares eked out gains on Friday but posted their worst weekly decline in nine months as investors took profits in Greater China markets that have outperformed the region so far this year, according to Reuters.

The Hang Seng added 0.53% to 22,828.92 and the Shanghai Composite Index closed 0.33% higher at 2,827.33.

In China, economic data for January due next week is expected to show that lending surged and inflation accelerated, prompting concerns among some investors that the central bank could take more steps to control money supply and tighten policy, after raising interest rates this week, according to Reuters.

At Bursa Malaysia, among banking stocks, RHB Capital fell 38 sen to RM7.89, CIMB and HLFG lost eight sen each to RM8.10 and RM8.75, Maybank and AMMB three sen each to RM8.53 and RM6.15, while Public Bank and Hong Leong Bank fell two sen each to RM13.04 and RM9.21.

Among plantations, PPB fell 38 sen to RM16.30, KLK 34 sen to RM21.74, Batu Kawan 26 sen to RM16.52, Sime Darby six sen to RM9.24, Boustead five sen to RM5.74 and IOI Corp three sen to RM5.53.

Other decliners included Nestle, F&N, LPI Capital, Tradewinds and S P Setia.

Gainers included Panasonic, YNH PROPERTIES [], Asia File, Malayan Flour Mills, Supermax and Delloyd.

Karambunai was the most actively traded counter with 61.4 million shares done. The stock slipped one sen to 24 sen. Other actives included Ho Wah Genting, Iris Corp, SAAG, Olympia, Ramunia, Palette and Petronas Chemicals.

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