Thursday, July 28, 2011

FBM KLCI falls below 1,550-level at mid-morning

KUALA LUMPUR: The FBM KLCI fell below the 1,550-point level at mid-morning on Thursday, July 28 in line with the retreat at regional markets spooked by the overnight tumble at Wall Street.

Asian markets opened in the red following Wall Street's worst day in eight weeks on worries US lawmakers will fail to raise the debt ceiling ahead of an August 2 deadline and trigger a national default.

The FBM KLCI fell 12.14 points to 1,546.03 at 10am, weighed by losses at banking and blue chip stocks. Losers beat gainers by 313 to 110, while 199 counters traded unchanged. Volume was 267.88 million shares valued at RM262.73 million.

At the regional markets, Japan's Nikkei 225 fell 1.12% to 9,935.07, Hong Kong's Hang Seng Index lost 0.68% to 22,389.36, the Shanghai Composite Index down 0.57% to 2,707.96, Taiwan's Taiex declined 0.47% to 8,776.11, South Korea's Kospi lost 0.95% to 2,153.76 and Singapore's Straits Times Index shed 0.54% to 3,176.26.

BIMB Securities Research in a note July 28 said that finally, reality was sinking in and pushing traders to the brink over the debt impasse as the Dow Jones was whacked by an almost 200 point decline further exacerbated by the weak US economic data on durable goods.

Meanwhile, it said Europe was not faring any better as S&P is the latest to downgrade Greece's rating to CCC from CC before.

'With this lethal mix of economic cocktails, we believe trading on the regional bourses to remain volatile with downward bias.

'On the local front, we expect trading to be range bound as we reckon foreign funds may be trickling into Malaysia as seen from the strengthening RM against the greenback. Immediate support is seen at the 1,550 mark,' it said.

Among the losers, DiGi fell 38 sen to RM29.86, Hong Leong Bank lost 22 sen to RM13.28, PPB, Petronas Gas and MISC fell 20 sen each to RM17.30, RM13.18 and RM7.63 respectively, HLFG 16 sen to RM13.02, Bursa 14 sen to RM7.79, Subur Tiasa 12 sen to RM257 while CIMB and Public Bank lost 10 sen each to RM8.29 and RM13.36.

Gainers included Ingress, PJ Bumi, Ancom, Nylex and Sapura Industries, while the actives included Bumi Armada shares and warrants, Olympia, Dutaland and BIG.

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