Monday, June 27, 2011

Asian markets edge lower

KUALA LUMPUR: Asian equity markets started the week of June 27 on a tepid note as a slump at Wall Street last Friday and an impending Greek parliamentary vote on austerity measures kept investors wary of buying into riskier assets.

At 10am, the FBM KLCI fell 3.54 points to 1,561.12.

Losers led gainers by 212 to 112, while 177 counters traded unchanged. Volume was 139.94 million shares valued at RM132.87 million.

At the regional markets, Hong Kong's Hang Seng Index fell 1.03% to 21,944.16, Japan's Nikkei 225 lost 0.86% to 9,595.18, Taiwans' Taiex was down 1.05% to 8,443.64, South Korea's Kospi fell 1.24% to 2,064.83 and Singapore's Straits Times Index shed 0.84% to 3,041.19.

Meanwhile, the Shanghai Composite Index edged up 0.03% to 2,746.90.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients June 27 said the obvious support areas for the FBM KLCI were located in the 1,536 to 1,563 zone.

The firm resistance zone of 1,564 and 1,576 would see very heavy liquidation activities.

Lee said the local market had meandered in a very tight range since the beginning of 2011, adding that he expects the local market to be further range-bound for the next few weeks, given the lack of market moving news flow.

'Local buying by some funds would cause the index to inch up though, despite the global malaise. However, it is matter of time before this index plays catch-down,' he said.

BIMB Securities Research said the Dow Jones slumped to below the psychological 12,000 mark again on concerns as investors liquidated their positions ahead of more economic data this week.

'Therefore, we expect the mood on Wall Street to be apprehensive.

'With the absence of any catalysts, we believe the local bourse to take cue from regional markets and expect some weaknesses today although it will be well supported. Immediate support is seen at the 1,550 level with resistance at 1,565,' it said on June 27.

Among the losers at mid-morning, Far East fell 25 sen to RM7.20, Batu Kawan 24 sen to RN16.94, DiGi 20 sen RM28.70, Genting 18 sen to RM11.06, Esso 12 sen to RM4.95, Malayan Flour Mills nine sen to RM7.65, NSOP eight sen to RM5.32 while Aeon Credit and Tan Chong lost seven sen each to RM4.80 and RM4.61.

Shangri-La was the top gainer and added 15 sen to RM2.90.; F&N was up 10 sen to RM19.46, Guan Chong six sen to RM2.80, AirAsia five sen to RM3.34 while MAHB, Astino and EUM Land gained four sen each to RM6.50, 73.5 sen and RM2.82 respectively.

The actively traded stocks included Jotech, SAAG, XOX, HWGB, MAA and Silver Bird.

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