KUALA LUMPUR: ''The FBM KLCI fell sharply in early trade on Tuesday, Feb 22 in line with the retreat at key regional markets on profit taking activities as investors rattled by the ongoing tensions in the Middle East cashed out on overbought blue chips.
Investor sentiment was further weighed down after Moody's Investor Services changed its outlook on the Japan's Aa2 sovereign rating to negative from stable on Tuesday, warning that government policies may not be enough to rein in the country's huge public debt.
Investors said all eyes are on oil prices and the Middle East, and the Moody's outlook change only highlights a deep-rooted problem, according to Reuters.
Almost all the subindexes fell as investors pocketed profits across the board after the Nikkei's longest winning streak in over a year, it said.
They were closely watching reports of escalating violence in Libya with protests sweeping the capital Tripoli and anti-government forces reportedly taking control of the city of Benghazi, said Reuters.
The FBM KLCI fell 11.39 points to 1,514.46 at mid-morning, weighed by losses at key blue chips including Genting, Maybank, IOI Corp and DiGi.
Losers thumped gainers by 435 to 91, while 227 counters traded unchanged. Volume was 334.03 million shares valued at RM256.08 million.
At the regional markets, Japan's Nikkei 225 fell 1.96% to 10.644.38, Taiwan's Taiex tumbled 2.10% to 8,653.28, South Korea's Kospi fell 1,83% to 1,968.62, Singapore's Straits Times Index lost 1.17% to 3,034.65, the Shanghai Composite Index slipped 0.10% to 2,929.32 while Hong Kong's Hang Seng Index opened 1.5% lower at 23,124.92.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Feb 22 said he anticipates 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 clients liquidate on rallies and remain more in cash (or in price defensive counters). Heavy foreign selling in the Asia-Pacific region and in Malaysia could be the next obvious major investment move on any significant regional rebound.
'Due to the lower European markets last night; we may see the FBM KLCI in a stilted and stunted rebound posture today,' he said.
Among the major losers in early trade, Kulim and genting fell 20 sen each to RM15.30 and RM10.38, Batu Kawan 18 sen to RM16.04, Jaya Tiasa and Hong Leong bank 16 sen each to RM4.90 and RM9.34, Keck Seng 15 sen to RM6.75, DiGi 14 sen to RM26.06, Maybank 13 sen to RM8.73 and IOI Corp 11 sen to RM5.48.
Among gainers, United PLANTATION [] tose 28 sen to RM16.80, Far East 20 sen to RM7.50, Tasek 12 sen to RM8.60, TH Plantations nine sen to RM1.99, Fima Corp eight sen to RM6.43 while Rimbunan Sawit and Petronas Dagangan added six sen each to RM2.33 and RM13.
HWGB was the most actively traded counter with 23 million shares done. The stock gained two sen to 66.5 sen. Other actives included Tanco, Karambunai, Olympia, Borneo Oil, Ariantec Global and Ramunia.
Investor sentiment was further weighed down after Moody's Investor Services changed its outlook on the Japan's Aa2 sovereign rating to negative from stable on Tuesday, warning that government policies may not be enough to rein in the country's huge public debt.
Investors said all eyes are on oil prices and the Middle East, and the Moody's outlook change only highlights a deep-rooted problem, according to Reuters.
Almost all the subindexes fell as investors pocketed profits across the board after the Nikkei's longest winning streak in over a year, it said.
They were closely watching reports of escalating violence in Libya with protests sweeping the capital Tripoli and anti-government forces reportedly taking control of the city of Benghazi, said Reuters.
The FBM KLCI fell 11.39 points to 1,514.46 at mid-morning, weighed by losses at key blue chips including Genting, Maybank, IOI Corp and DiGi.
Losers thumped gainers by 435 to 91, while 227 counters traded unchanged. Volume was 334.03 million shares valued at RM256.08 million.
At the regional markets, Japan's Nikkei 225 fell 1.96% to 10.644.38, Taiwan's Taiex tumbled 2.10% to 8,653.28, South Korea's Kospi fell 1,83% to 1,968.62, Singapore's Straits Times Index lost 1.17% to 3,034.65, the Shanghai Composite Index slipped 0.10% to 2,929.32 while Hong Kong's Hang Seng Index opened 1.5% lower at 23,124.92.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Feb 22 said he anticipates 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 clients liquidate on rallies and remain more in cash (or in price defensive counters). Heavy foreign selling in the Asia-Pacific region and in Malaysia could be the next obvious major investment move on any significant regional rebound.
'Due to the lower European markets last night; we may see the FBM KLCI in a stilted and stunted rebound posture today,' he said.
Among the major losers in early trade, Kulim and genting fell 20 sen each to RM15.30 and RM10.38, Batu Kawan 18 sen to RM16.04, Jaya Tiasa and Hong Leong bank 16 sen each to RM4.90 and RM9.34, Keck Seng 15 sen to RM6.75, DiGi 14 sen to RM26.06, Maybank 13 sen to RM8.73 and IOI Corp 11 sen to RM5.48.
Among gainers, United PLANTATION [] tose 28 sen to RM16.80, Far East 20 sen to RM7.50, Tasek 12 sen to RM8.60, TH Plantations nine sen to RM1.99, Fima Corp eight sen to RM6.43 while Rimbunan Sawit and Petronas Dagangan added six sen each to RM2.33 and RM13.
HWGB was the most actively traded counter with 23 million shares done. The stock gained two sen to 66.5 sen. Other actives included Tanco, Karambunai, Olympia, Borneo Oil, Ariantec Global and Ramunia.
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