Tuesday, April 5, 2011

FBM KLCI slips at mid-morning

KUALA LUMPUR: The FBM KLCI slipped into negative territory at mid-morning on Tuesday, April 5 as Japan's Nikkei 225 fell, while the Hong Kong, China and Taiwan markets were closed for national holidays.

Meanwhile, Wall Street closed marginally higher yesterday, impacted by the rising crude oil price.

The FBM KLCI edged down 0.12 point to 1,555.36 at 10am.

Losers led gainers by 246 to 217, while 223 counters traded unchanged. Volume was 298.33 million shares valued at RM303.03 million.

At the regional markets, Japan's Nikkei 225 lost 1.15% to 9,606.72, South Korea's Kospi shed 0.03% to 2,115.31 while Singapore's Straits Times Index added 0.13% to 3,144.64.

The China and Taiwan markets will resume trade on Wednesday, April 6 after being closed yesterday and today to observe the Tomb Sweeping Day. The Hang Seng will also resume trade tomorrow.

Japan's Nikkei average slipped on Tuesday with the mood soured by Tokyo Electric Power's fall to an all-time low, but was set to stick to a tight range for a third day as a post-quake rebound looks to have run its course, according to Reuters.

The Nikkei's climb over the previous two sessions brought it close to its 200-day moving average at 9,822 but that level and the 9,800 line proved to be stiff resistance for a market still troubled by uncertainty over the exact impact of the massive earthquake on March 11, it said.

BIMB Securities Research in a note April 5 said investors were also waiting at the sideline ahead of the official results season that is scheduled to start next.

It also pointed out that crude oil price continued its steady up rising and was now already at a 30-month high of US$108 per barrel.

With not much catalyst in sight, investors were harping on this negative development that resulted in the less than sanguine trading momentum, it said.

'The situation in Libya appeared uncertain at best with the clashes between the pro and against the long reigning leader still erupted ever now and then.

'The less-than-encouraging trading momentum in Wall Street may likely influence the local market trading mood today especially if the crude oil price continue with its trajectory,' it said.

Decliners were led by MNRB that fell 16 sen to RM2.72, Dutch Lady 10 sen to RM16.20, Tong Herr nine sen to RM2.46, Genting Malaysia and MAA down eight sen each to RM3.72 and 97 senm Masterskill seven sen to RM2.08 while KNM fell six sen to RM2.86.

Among the top gainers on Bursa Malaysia at mid-morning, Coastal Contracts jumped 23 sen to RM3.64.

The Edge Weekly on Monday said that Coastal was eyeing a strategic shareholder to diversify into the fabrication business.

Meanwhile, Berjaya Food added 10 sen to 92.5 sen. CIMB Equities Research said Berjaya Food (B-Food) is a stock to watch in the coming months.

It said on Tuesday, April 5 that as Berjaya Corp is likely to use B-Food as its listed vehicle for F&B, there could be interesting M&A plays for the stock.

Other gainers included Cypark, Konsortium, Nestle, Mudajaya, UAC, GAB and S P Setia.

Actives included TMS, Digistar, MAA, DBE Gurney, Zelan and Perisai.

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