Monday, July 25, 2011

FBM KLCI starts week on weaker note, Latexx in focus

KUALA LUMPUR: The FBM KLCI kicked off the week of Monday, July 25 on a weaker note in line with the jittery sentiment at key regional markets over rising concerns of the financial standing of the US following the collapse in negotiation over its debt ceiling last Friday.

Meanwhile, LATEXX PARTNERS BHD [] shares and warrants fell at mid-morning after YTY Industry Holdings Sdn Bhd withdrew its offer to merge its four glove-making subsidiaries unit with Latexx.

At 10am, the FBM KLCI fell 4.24 points to 1,560.82.

Losers led gainers by 288 to 103, while 170 counters traded unchanged. Volume was 206.41 million shares valued at RM151.70 million.

At the regional markets, Japan's Nikkei 225 fell 0.63% to 10,068.63, Hong Kong's Hang Seng Index lost 0.88% to 22,246.32, the Shanghai Composite Index declined 0.87% to 2,746.57, Taiwan's Taiex down 0.50% to 8,721.72, South Korea's Kospi dipped 0.68% to 2,156.48 and Singapore's Straits Times Index fell 0.96% to 3,152.47.

MIDF Research acting head of equity Syed Muhammad Kifni said while the research house maintained its ur year-end FBM KLCI target of 1,650 points, market volatility was expected to increase in the coming months.

'The second half is generally wrought with downside surprises, and is also associated with major market corrections.

'We do not expect the perception to be any different this year. In July and August, the market will be focusing on earnings for the quarter ended June,' he said in a note July 25.

BIMB Securities Research meanwhile said the US situation would add volatility to both the equity and bond markets as investors will weigh on such scenarios.

As such, corporate results in the US may have to take a back seat until a clearer picture prevails.

'As for the regional bourses, we expect there to be a knee jerk reaction to the negative development but believe funds may flow into Asia that offers the best clarity in equity trading at the moment.

'As for Malaysia, though market undertone remains positive we are bracing for some aftershocks from the US with the FBM KLCI immediate support at 1,560,' it said in a note July 25.

On Bursa Malaysia, ''Latexx warrants fell 17 sen to RM1.54 while the shares lost 16 sen to RM2.02; Sindora was down 15 sen to RM2.45, Genting 14 sen to RM10.58, RHB Capital, Kawan Food and S'' P Setia down 13 sen each to RM9.06, RM1.11 and RM3.94 respectively, Catcha Media 11.5 sen to 69.5 sen, KYM 11 sen to RM2.10 while KLCCP lost 10 sen to RM3.30.

Newly-listed Hibiscus Petroleum Bhd's warrants and shares were actively traded this morning. The warrants rose one sen to 13.5 sen with 36.1 million units done while the shares fell 9.5 sen to 53 sen.

Other actives included Ingenuity Solutions, Palette, Bumi Armada and Perwaja.

Gainers included Shell, Lafarge Malayan Cement, Toyo Ink, 3A, Maxtral and Southern Acids.

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