Tuesday, September 6, 2011

KLCI slips for second day running as Asian markets falter

KUALA LUMPUR: The FBM KLCI fell for a second day on Tuesday, Sept 6 as global economic health woes weighed on key Asian markets after the overnight rout at European markets, while the US markets were spared given the Labor Day holiday there.

At 10am, the FBM KLCI fell 6.02 points to 1,457.10, weighed by losses at select blue chips.

Losers led gainers by 276 to 77, while 164 counters traded unchanged. Volume was 112.73 million shares valued at RM157.4 million.

At the regional markets, Japan's Nikkei 225 fell 1.23% to 8,676.12, Hong Kong's Hang Seng Index lost 1.06% to 19,407.99, Singapore's Straits Times Index down 0.81% to 2,750.82, Taiwan's Taiex fell 0.69% to 7,499.13, South Korea's Kospi down 0.42% to 1,778.29 while the Shanghai Composite Index shed 0.31% to 2,471.17.

BIMB Securities Research in a note Sept 6 said that with Wall Street closed for Labour Day yesterday, European bourses took centre stage and floundered badly on same concerns over global economy and prevailing financial crisis.

London's FTSE, German's Dax and France's CAC all declined in excess of 3% and were the main culprits prompting the selling on Asian equities, it said.

'As a result, Bursa Malaysia after a relatively solid morning session, succumbed to the selling in the after and we expect such trend to persists in the absence of any positive catalysts.

'We expect investors to stay sidelined with the FBMKLCI's immediate support seen at the 1,450 level,' it said.

Meanwhile, Maybank Investment Bank Bhd Research said in its market strategy note on Sept 6 that as can only be expected from the sharp downturn in the KLCI in August (-101.5 points), foreigners exited Malaysian equities during the month with RM3.8 billion worth of net selling.

'We believe that there could still be some near-term downside potential as August's net activities reversed out just 58% of the total net foreign buying in Apr-July.

'We remain defensive at the core, expecting a rebound towards year-end to lift KLCI closer to our recently revised 1,520 points target,' it said.

On Bursa Malaysia, Quality Concrete was the top loser at mid-morning and fell 29 sen to RM1.25; Hong Leong Bank lost 22 sen to RM12.06, KYM down 15 sen to 1.75, CIMB and Rapid 10 sen each to RM7.30 and RM1.90, RHB Capital nine sen to RM8.21, while Top Glove, Kulim, KLK and Genting PLANTATION []s lost eight sen each to RM4.84, RM3.63, RM21.12 and RM7.21 respectively.

Among the gainers, DiGi rose 56 sen to RM31.76, Lafarge Malayan Cement 38 sen to RM7.29, Panasonic and DXN 30 sen each to RM21.94 and RM1.69, Petronas Gas 12 sen to RM13.38, Shell 10 sen to RM9.90, Nilai nine sen to RM1.21, while Toyo Ink and Subur Tiasa rose six sen each to RM1.41 and RM2.18.

E&O was the most actively traded counter with 11.8 million shares done. The stock added five sen to RM1.72.

Other actives included DXN, Takaso, Axiata and Genting.

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