Wednesday, February 9, 2011

KLCI slips into red, China weighs

KUALA LUMPUR: The FBM KLCI slipped into the red at mid-morning on Wednesday, Feb 9 on some mild profit taking, in line with the general decline at most regional markets after China stocks opened lower following the interest rate hike by its central bank.

At 10am, the FBM KLCI shed 2.37 points to 1,537.18, weighed by losses at blue chips including KLK, Genting, AMMB and Hong Leong Bank.

Gainers trailed losers by 186 to 332, while 214 counters traded unchanged. Volume was 562.92 million shares valued at RM392.4 million.

China's main stock index opened down 0.7% on Wednesday after the central bank announced a rise in benchmark interest rates on Tuesday, the eve of the market's reopening after the week-long Lunar New Year holiday, according to Reuters.

The Shanghai Composite Index opened at 2,778.7 points, but some analysts expect the index may end the day with a slight rise as global markets have generally strengthened during the past week, it said.

At the regional markets, the Shanghai Composite Index lost 0.20% to 2,793.50, South Korea's Kospi fell 0.58% to 2,057.68, Singapore's Straits Times Index down 0.35% to 3,174.34, Taiwan's Taiex shed 0.17% to 9,095.99, while Japan's Nikkei 225 pared down its gains to be up 0.22% to 10,659.01 and Hong Kong's Hang Seng Index opened 0.2% higher at 23,535.41.

MIDF Research head Zulkifli Hamzah said China's'' decision'' to'' raise'' interest'' yesterday'' was'' clearly'' a'' preemptive'' move'' to'' manage'' expectation, adding that the interest rate hike throws investors' expectation into a quandary.

On Bursa Malaysia, KLK was the top loser and fell 44 sen to RM22.12 after RHB Research Institute trimmed its forecasts by 8.1%-9.6% for FY09/11-13.

'Post-earnings revision, we reduced our sum-of-parts-based fair value for KLK to RM25.95 (from RM27.35), but maintain our Outperform rating,' said the research house.

Genting continued its slide and fell 14 sen to RM10.60; AMMB fell 11 sen to RM6.49, Dutch Lady, Bursa and SapuraCrest lost 10 sen each to RM16.28, RM8.45 and RM3.55, while Kwantas, HELP and Hong Leong Bank fell nine sen each to RM1.88, RM2.18 and RM9.22 respectively.

Gainers included Nestle, Hong Leong Industries, PacificMas, MAHB, Lafarge Malayan Cement, DiGi, Dayang, UMW and Naim.

Ho Wah Genting was the most actively traded counter with 29.1 million shares done. The stock added 3.5 sen to 81 sen. Other actives included Karambunai, PJI Holdings, SAAG, Talam, Hua Ann, Olympia and MUI Industries.

No comments:

Post a Comment