Friday, September 9, 2011

KLCI remains lackluster at mid-morning, pares down gains

KUALA LUMPUR: Asian markets, including Bursa Malaysia, traded cautiously as the investor sentiment turned tepid with the lack of clearer stimulus plans from both US and Europe, and with all focus now on data to be released later today in China.

The European Central Bank discussed downside risks to the euro zone's economy while U.S. Federal Reserve Chairman Ben Bernanke said authorities would do all they can to boost growth and employment.

But both steered clear of announcing any fresh steps, disappointing some and leaving them to wait for a raft of Chinese data.

A job package proposal by US President Barack Obama was broadly in line with expectations and failed to impress markets.

The FBM KLCI pared down some its earlier gains and was up 5.07 points to 1,474.90 at 10am. The index had earlier risen to 1,480.33 in early trade.

Gainers edged losers by 161 to 154, while 170 counters traded unchanged. Volume was 124.13 million shares valued at RM103.87 million.

At the regional markets, Japan's Nikkei 225 edged up 0.09% to 8,801.11, the Shanghai Composite Index added 0.22% to 2,504.50 and Taiwan's Taiex rose 1.22% to 7,640.55.

Meanwhile, Hong Kong's Hang Seng Index slipped 0.14% to 19,885.85, South Korea's Kospi fell 0.80% to 1,831.94 and Singapore's Straits Times Index lost 0.64% to 2,838.74.

BIMB Securities Research in a note Sept 9 said it was a case of traders getting too fixated on Bernanke and his none too revealing speech yesterday had again been deemed as disappointing thus the decline on Wall Street with the Dow Jones Industrial Average losing 119 points.

It would be interesting to see if traders liked Obama's US$300 billion plan to resurrect employment on Friday.

Meanwhile, regional markets were mixed amid the stagnant European bourses, it said.

'As for the local bourse, we noticed that foreign selling has somewhat abated and may see a more steady market moving forward.

'Following the recently concluded quarterly results reporting, we noticed earnings growth for corporate Malaysia remains intact albeit tweaked marginally lower, FY11 and FY12 would still achieve double digit growth. We would expect to see a firmer market today,' it said.

On Bursa Malaysia, DiGi rose RM1.38 to RM32.50 after the company announced a corporate exercise that would see it making a capital distribution of RM509 million to shareholders.

BAT gained 48 sen to RM44.38, Puncak Niaga 17 sen to RM1.31, Cocoaland 14 sen to RM2.10, Genome and Petronas Gas 10 sen each to 70 sen and RM13.58, Kumpulan Europlus 9.5 sen to RM1.01, while Amway added eight sen to RM9.

Timecom was the most actively traded counter with 9.66 million shares done. The stock gained three sen to 60 sen.

Other actives included Malton, TMS, Tricubes, Tanco, Time, LBS, E&O and MK Land.

Meanwhile, losers included Ta Ann, Nestle, Boustead, Bintulu Port, Glomac, Golsta, Bernas, Kluang and Cymao.

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