KUALA LUMPUR: The FBM KLCI extended its losses on Tuesday, July 12 in line with the overnight fall at Wall Street and the slump this morning at key regional markets on renewed worries of the euro zone debt crisis.
Italy, the third largest economy in the euro zone, has emerged as the latest concern, according to Reuters.
It has the second-highest debt to GDP ratio in the group after Greece, giving rise to fears of a spreading contagion and prompting a meeting of top officials, it said.
Meanwhile, US stocks suffered their worst day in nearly a month following the Italy news, along with concern about the stalemate in US budget talks, said Reuters.
The FBM KLCI fell 7.08 points to 1,581.50 at 10am.
Losers beat gainers by 252 to 91, while 196 counters traded unchanged. Volume was 131.36 million shares valued at RM167.17 million.
At the regional markets, Hong Kong's Hang Seng Index fell 1.78% to 21,949.52, Japan's Nikkei 225 lost 1.53% to 9,915.00, South Korea's Kospi down 1.89% to 2,116.46, Taiwan's Taiex fell 1.65% to 8,522.99, Singapore's Straits Times Index was down 0.99% to 3,086.46 and the Shanghai Composite Index shed 0.84% to 2,779.14.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients July 12 said that due the US markets' weaker tone last night, there could be some profit taking and liquidation activities in the local bourse today.
The market could fall marginally, with some later local buying activities emerging to cushion the initial drop.
'There is a good possibility that it had made its all-time high and resistance of 1,597.08 yesterday.
'If the index surges and sustains above 1,597.08, then we see upside to 1,601 and 1,618 in the short term. Else, some heavy liquidation will persist due the continuing Eurozone worries,' he said.
Among the losers at mid-morning, Panasonic fell 30 sen to RM24.02, MISC down 19 sen to RM7.60, PPB and DiGi 18 sen each to RM17.50 and RM29.70, Lysaght and MMHE 15 sen each to RM1.51 and RM8.30, HLFG 14 sen to RM13.36, Petronas Gas 13 sen to RM13.68, Malayan Flour Mills 10 sen to RM8.18 and SHL down nine sen to RM1.25.
Kencana was the most actively trade counter with 9.63 million shares done. The stock added 12 sen to RM2.92. ''Other actives included Malton warrants, Time, Muda, Hubline and Genting Malaysia.
CI Holdings was the top gainer at mid-morning and was up 15 sen to RM3.66;'' Toyo Ink added 10 sen to RM1.59, EPIC seven sen to RM2.74, Petronas Dagangan six sen to RM17.48, Muda and EIG five sen each to RM1.14 and 50 sen, while Lii Hen added 4.5 sen to RM1.02.
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Italy, the third largest economy in the euro zone, has emerged as the latest concern, according to Reuters.
It has the second-highest debt to GDP ratio in the group after Greece, giving rise to fears of a spreading contagion and prompting a meeting of top officials, it said.
Meanwhile, US stocks suffered their worst day in nearly a month following the Italy news, along with concern about the stalemate in US budget talks, said Reuters.
The FBM KLCI fell 7.08 points to 1,581.50 at 10am.
Losers beat gainers by 252 to 91, while 196 counters traded unchanged. Volume was 131.36 million shares valued at RM167.17 million.
At the regional markets, Hong Kong's Hang Seng Index fell 1.78% to 21,949.52, Japan's Nikkei 225 lost 1.53% to 9,915.00, South Korea's Kospi down 1.89% to 2,116.46, Taiwan's Taiex fell 1.65% to 8,522.99, Singapore's Straits Times Index was down 0.99% to 3,086.46 and the Shanghai Composite Index shed 0.84% to 2,779.14.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients July 12 said that due the US markets' weaker tone last night, there could be some profit taking and liquidation activities in the local bourse today.
The market could fall marginally, with some later local buying activities emerging to cushion the initial drop.
'There is a good possibility that it had made its all-time high and resistance of 1,597.08 yesterday.
'If the index surges and sustains above 1,597.08, then we see upside to 1,601 and 1,618 in the short term. Else, some heavy liquidation will persist due the continuing Eurozone worries,' he said.
Among the losers at mid-morning, Panasonic fell 30 sen to RM24.02, MISC down 19 sen to RM7.60, PPB and DiGi 18 sen each to RM17.50 and RM29.70, Lysaght and MMHE 15 sen each to RM1.51 and RM8.30, HLFG 14 sen to RM13.36, Petronas Gas 13 sen to RM13.68, Malayan Flour Mills 10 sen to RM8.18 and SHL down nine sen to RM1.25.
Kencana was the most actively trade counter with 9.63 million shares done. The stock added 12 sen to RM2.92. ''Other actives included Malton warrants, Time, Muda, Hubline and Genting Malaysia.
CI Holdings was the top gainer at mid-morning and was up 15 sen to RM3.66;'' Toyo Ink added 10 sen to RM1.59, EPIC seven sen to RM2.74, Petronas Dagangan six sen to RM17.48, Muda and EIG five sen each to RM1.14 and 50 sen, while Lii Hen added 4.5 sen to RM1.02.
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