KUALA LUMPUR: The FBM KLCI dipped in early trade on Tuesday, June 21 as key regional markets advanced cautiously as investor confidence remained fragile ahead of the US Federal Reserve meeting on Wednesday.
Although Wall Street closed higher overnight, analysts said concerns of a contagion effect from the Euro zone debt crisis would likely keep investors on the sidelines for now, adding that trading at regional markets would be rather subdued.
The FBM KLCI shed 0.23 points to 1,558.96 at 10am.
Losers beat gainers by 212 to 129, while 215 counters traded unchanged. Volume was 178.10 million shares valued at RM128.93 million.
At the regional markets, Japan's Nikkei 225 was up 0.89% to 9,437.38, Hong Kong's Hang Seng added 0.78% to 21,768.00, the Shanghai Composite Index edged up 0.42% to 2,632.23, Taiwan’s Taiex rose 0.38% to 8,562.87, South Korea's Kospi added 0.36% to 2,026.83 and Singapore’s Straits Times Index was up 0.66% to 3,033.60.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on June 21 said that due to US markets' rebound tone last night, there could be some initial low volume buying activities in the local bourse today.
"The market could possibly rise, with some profit taking activities later in the day. As a result we expect the FBM KLCI to remain volatile on an intra-day basis today."
"Investors should trade the market with a short-term time frame," he said.
BIMB Securities Research said the Greece credit woes were looking ominous with credit rating agencies getting ready to downgrade with Italy said to be next in line.
"French banks with US$57 billion exposure in Greek debts could be next. Now there are also concerns that European banks with high leverage may face collapse in the wake of the financial crisis bugging Europe at the moment."
"Locally, the lack of fresh news may see a prolonged consolidation on the market with the FBM KLCI hovering between 1,550 to 1,565 levels," it said on June 21.
On Bursa Malaysia, Nestle was the top loser at mid-morning and fell 30 sen to RM47.70; KLK lost 26 sen to RM21.84, MAA Holdings down 19.5 sen to 83.5 sen, Carlsberg 16 sen to RM7.24, Berjaya Sports Toto 12 sen to RM4.40, Hing Yap nine sen to RM1.59, United PLANTATION []s eight sen to RM19.90, Timecom seven sen to 72 sen and PacificMas six sen to RM3.82.
Ingenuity Solutions was the most actively traded counter with 29.9 million shares done. The stock fell 2.5 sen to 8 sen.
Other actives included MAA, Timecom, RGB International, Asia Media, Mclean and DBE Gurney.
Among the gainers, DiGi added 18 sen to RM29.18, BAT and Lafarge Malayan Cement 14 sen each to RM45.80 and RM7.50, PPB and Petronas Gas 10 sen each to RM17.10 and RM13, Malayan Flour Mills eight sen to RM7.39, KPJ seven sen to RM4.60, IJM Plantations six sen to RM2.92 while Bursa and Proton added five sen each to RM7.65 and RM3.50.
Although Wall Street closed higher overnight, analysts said concerns of a contagion effect from the Euro zone debt crisis would likely keep investors on the sidelines for now, adding that trading at regional markets would be rather subdued.
The FBM KLCI shed 0.23 points to 1,558.96 at 10am.
Losers beat gainers by 212 to 129, while 215 counters traded unchanged. Volume was 178.10 million shares valued at RM128.93 million.
At the regional markets, Japan's Nikkei 225 was up 0.89% to 9,437.38, Hong Kong's Hang Seng added 0.78% to 21,768.00, the Shanghai Composite Index edged up 0.42% to 2,632.23, Taiwan’s Taiex rose 0.38% to 8,562.87, South Korea's Kospi added 0.36% to 2,026.83 and Singapore’s Straits Times Index was up 0.66% to 3,033.60.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on June 21 said that due to US markets' rebound tone last night, there could be some initial low volume buying activities in the local bourse today.
"The market could possibly rise, with some profit taking activities later in the day. As a result we expect the FBM KLCI to remain volatile on an intra-day basis today."
"Investors should trade the market with a short-term time frame," he said.
BIMB Securities Research said the Greece credit woes were looking ominous with credit rating agencies getting ready to downgrade with Italy said to be next in line.
"French banks with US$57 billion exposure in Greek debts could be next. Now there are also concerns that European banks with high leverage may face collapse in the wake of the financial crisis bugging Europe at the moment."
"Locally, the lack of fresh news may see a prolonged consolidation on the market with the FBM KLCI hovering between 1,550 to 1,565 levels," it said on June 21.
On Bursa Malaysia, Nestle was the top loser at mid-morning and fell 30 sen to RM47.70; KLK lost 26 sen to RM21.84, MAA Holdings down 19.5 sen to 83.5 sen, Carlsberg 16 sen to RM7.24, Berjaya Sports Toto 12 sen to RM4.40, Hing Yap nine sen to RM1.59, United PLANTATION []s eight sen to RM19.90, Timecom seven sen to 72 sen and PacificMas six sen to RM3.82.
Ingenuity Solutions was the most actively traded counter with 29.9 million shares done. The stock fell 2.5 sen to 8 sen.
Other actives included MAA, Timecom, RGB International, Asia Media, Mclean and DBE Gurney.
Among the gainers, DiGi added 18 sen to RM29.18, BAT and Lafarge Malayan Cement 14 sen each to RM45.80 and RM7.50, PPB and Petronas Gas 10 sen each to RM17.10 and RM13, Malayan Flour Mills eight sen to RM7.39, KPJ seven sen to RM4.60, IJM Plantations six sen to RM2.92 while Bursa and Proton added five sen each to RM7.65 and RM3.50.
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