Monday, August 22, 2011

KLCI starts week on weaker note

KUALA LUMPUR: The FBM KLCI extended its losses at mid-morning on Monday, Aug 22 in line with the weaker closing at Wall Street last Friday and the still cautious sentiment at regional markets.

Most regional markets were slightly up on the prospect of currency market intervention in Japan offsetting growing worries of another U.S. recession.

The FBM KLCI was down 6.96 points to 1,477.02 at 10am, with weighed ''by losses at blue chips including CIMB, BAT, KLK, and Digi.

Losers edged gainers by 267 to 121, while 174 counters traded unchanged. Volume was 132.95 million shares valued at RM256.82 million.

At the regional markets, Japan's Nikkei 225 added 0.19% to 8,735.57, Hong Kong's Hang Seng Index gained 0.79% to 19,553.81, the Shanghai Composite Index was up 0.39% to 2,544.19, Taiwan's Taiex rose 1.69% to 7,466.77 and Singapore's Straits Times Index edged up 0.27% to 2,740.95.

Meanwhile, South Korea's Kospi shed 0.04% to 1,744.20.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said in a note to clients on Aug 22 that weaker US and Eurozone poorer debt and economic fundamentals were causing global investors to liquidate on any and every rebound rally.

He said investors should dispose stocks in rally and keep more cash than equity, adding that any attempt to bargain hunt would be futile and short-lived.

'Therefore, any quick bargain hunting profits may quickly erode if clients do not take their positions off the table swiftly.

'Traditionally the August to October period is the set of months when there is massive equity volatility. Clients should tag on a very cautious investment stance for the coming weeks,' said Lee.

BAT was the top loser at mid-morning and fell 34 sen to RM44.90; Ta Ann and Hong Leon Bank fell 18 sen each to RM5.07 and RM12.82, Genting PLANTATION []s 15 sen to RM7.05 while Ann Joo, PacificMas, DiGi, KLK and CIMB fell 12 sen each to RM2.42, RM3.40, RM29.70, RM21.32 and RM7,81 respectively.

Axiata was the most actively traded counter with 8.87 million shares traded. The stock shed one sen to RM4.99.

Other actives included E&O, DVM, Karambunai, MAS, CIMB and Petronas Chemicals.

Gainers included Malayan Flour Mills, Spritzer, Nestle, Tradewinds, Ogawa, Jaya Tiasa, HELP and IJM Plantations.

No comments:

Post a Comment