Monday, September 19, 2011

KLCI falls below 1,430-level at mid-morning

KUALA LUMPUR: The FBM KLCI fell below the 1,430-point level at mid-morning on Monday, Sept 19 as external factors continued to dominate regional investors' sentiment and dragged most key markets lower.

Stocks fell and the euro dropped 1% on Monday as investors worried about Europe's fumbling attempts to solve the euro zone debt crisis and awaited a meeting of the Federal Reserve for clues on whether it will offer fresh stimulus for the sputtering US economy, according to Reuters.

A weekend of disappointing news from the euro zone prompted market players to cut risk and move into gold and US Treasuries, even as speculation grew that the Federal Reserve will announce further quantitative steps, such as lengthening the maturity of its debt holdings at a policy meeting this week.

EU finance ministers meeting in Poland broke no new ground in dealing the crisis in talks over the weekend.

At mid-morning, the FBM KLCI fell 5.98 points to 1,424.95, weighed by losses including at Petronas Gas, Sime Darby, Petronas Dagangan and MISC.

Gainers edged losers by 168 to 139, while 185 counters traded unchanged.'' Volume was 106.31 million shares valued at RM148.99 million.

At the regional markets, Hong Kong's Hang Seng Index fell 1.96% to 10,073.68, the Shanghai Composite Index lost 1.12% to 2,454.62, Taiwan's Taiex down 0.77% to 7,519.07, Singapore's Straits Times Index shed 0.73% to 2,768.57 and South Korea's Kospi gave up 0.28% to 1,834.99.

Meanwhile, Japan's Nikkei 225 was closed for a national holiday.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Sept 19 said the FBM KLCI tumbled 38.19-points and closed at 1,430.93 last Friday, adding that the weaker support areas for the FBM KLCI were located in the 1,360 to 1,423-zone.

The next resistance levels of 1,430 and 1,511 will see very heavy liquidation activities.

Weaker USA and EUROZONE debt and economic fundamentals are causing global investors to liquidate on every rebound.

We urge that investors should dispose stocks on rally and to keep more cash to equity.

On Bursa Malaysia, Petronas Gas fell 88 sen to RM13.80, DiGi lost 56 sen to RM31.40, Dutch Lady and Panasonic 20 sen each to RM19.50 and RM20.10, PPB and Sime Darby 18 sen each to RM16.72 and RM7.82, Amway 14 sen to RM8.85, Petronas Dagangan and MISC 12 sen each to RM17.22 and RM6.70 while Crescendo was down nine sen to RM1.31.

Takaso was the most actively traded counter with 13 million shares done. The stock fell half a sen to 19 sen.

Other actives included E&O, Timecom, Sime Darby, Green Packet, UEM Land, Sanichi and MRCB.

Gainers at mid-morning included KLK, BHIC, F&N, S P Setia, Maxtral, Genting PLANTATION []s, HELP, Top Glove and AFG.





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