Friday, August 5, 2011

Mayhem at Asian markets, KLCI below 1,530

KUALA LUMPUR: The FBM KLCI tumbled more than 37 points in early trade on Friday, Aug 5 before re-gaining some lost ground at mid-morning, following the steep overnight crash at Wall Street.

Asian markets, spooked by the selloff at Wall Street that saw both the Dow Jones and S&P 500 fall more than 4% each and the Nasdaq by 5%, followed suit, with the Hang Seng Index tumbling more than 4.8%.

The FBM KLCI lost 18.10 points to 1,528.79 at 10am, as key blue chips slumped. Market breadth was negative with losers thumping gainers by 751 to 20, while 76 counters traded unchaged.

At the regional markets, Hong Kong's Hang Seng Index fell 4.84% to 20,825.17, Taiwan's Taiex lost 5.09% to 7,894.27, Japan's Nikkei 225 lost 3.36% to 9,334.26, South Korea's Kospi down 3.82% to 1,941.40, Singapore's Straits Times Index lost 2.96% to 3,105.08 and the Shanghai Composite Index fell 2.27% to 2,623.16.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients said that due to the US markets' crash last night, there would be some volatile trading activities in the local bourse today.

'Some very heavy profit-taking and liquidation activities will emerge later to depress the markets' rebound from its opening 'gap down' low.

'We see a longer term decline for the local and foreign indices. Sell on rallies and keep cash for the crash,' he said.

Meanwhile, MIDF Research in a note Aug 5 said markets in the region in general and locally in particular should be bracing for a rough trading session today.

'It will probably get worse in the afternoon when Europe opens,' it said.

BAT led the losers on Bursa Malaysia and was down 80 sen to RM45.48; Panasonic lost 78 sen to RM23.60, Tasek 37 sen to RM7.93, Batu Kawan 36 sen to RM16.20, HLFG 34 sen to RM12.76, Tradewinds and F&N 30 sen each to RM9.08 and RM18.90, LPI Capital 28 sen to RM13.40, while Hong Leong Bank and DiGi lost 24 sen each to RM13.32 and RM29.80 respectively.

Sanichi was the most actively traded counter with 27 million shares done. The stock fell one sen to 9.5 sen. Other actives included Axiata, Karambunai, XOX, MRCB, CIMB, DVM, MBSB and MAS.

Gainers included Latitude, UAC, Atis, Catcha and Focal.

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