Thursday, August 18, 2011

Trading remains cautious at local bourse

KUALA LUMPUR: Trading at the local stock exchange was subdued at mid-morning on Thursday, aug 18 in line with the retreat at most key regional markets, while ESSO MALAYSIA BHD [] shares slumped after investors' were given a rude awakening by the less-than-expected offer price from San Miguel Corp for a 65% stake in the company.

Esso Malaysia Bhd shares were in focus on Thursday, Aug 18 as the FBM KLCI

Asian stocks eased on Thursday following a negative lead from U.S. TECHNOLOGY [] shares, while the Swiss franc stayed buoyed after plans to curb the currency disappointed those looking for more drastic action, according to Reuters.

With market sentiment still fragile, data due later in the day, including US initial jobless claims, consumer prices, existing home sales and regional manufacturing data will be closely watched.

The FBM KLCI slipped 0.05 point to 1,503.02 at 10am, weighed by losses at select blue chips.

Losers edged gainers by 175 to 169, while 213 counters traded unchanged. Volume was 191.64 million shares valued at RM243.33 million.

At the regional markets, Japan's Nikkei 225 fell 0.42% to 9,019.52, Hong Kong's Hang Seng Index lost 0.52% to 20,183.51, the Shanghai Composite Index shed 0.22% to 2,595.62, Taiwan's Taiex lost 1.38% to 7,634.98, South Korea's Kospi fell 1.21% to 1,869.82 while Singapore's Straits Times Index edged up 0.15% to 2,832.89.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Aug 18 said the FBM KLCI's resistance areas of 1,503 and 1,530 will cap market gains, whilst the weaker support areas were located at 1,470 and 1,500.

'Due to the US markets' mixed tone last night, we will see some quiet and benign trading activities in the local bourse today,' he said.

On Bursa Malaysia, shares of Esso slumped after the initial euphoria over San Miguel's offer to buy a controlling 65% stake from ExxonMobil International Holdings Inc in the company fizzled out following its disappointing offer of RM3.50 per share.

Esso was the top loser and fell 72 sen to RM4.23 with 7.64 million shares done.

Other losers were Malayan Flour Mills that fell 23 sen to RM7.36, Petronas Gas and Hong Leong Bank down 14 sen each to RM13.40 and RM12.80, QSR, UMW and BAT 10 sen each to RM6, RM7.13 and RM43.90, while Xinquan, HLFG and PPb lost eight sen each to 88 sen, RM12.20 and RM17.10.

PLANTATION []-related stocks were among the gainers, with KLK up 14 sen to RM21.48, Tradewinds Plantations 13 sen to RM3.42, SOP nine sen to RM4.35, Sime and APM Automotive eight sen each to RM8.96 and RM4.96, SapuraCrest 7.5 sen to 97 sen and Fima Corp six sen to RM6.06.

MAA was the most actively traded counter with 16.7 million shares traded. The stock added six sen to 62 sen.

Other actives included Kurnia Asia, Esso, Hovid, Perdana, HWGB and DBE Gurney.

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