Tuesday, November 1, 2011

KLCI falls in early trade, Genting weighs

KUALA LUMPUR (Nov 1): Blue chips started November on a cautious note on Tuesday, as investors taking their cue from the weak overnight close on Wall Street, took profit.

Among the decliners were Genting, MMHE, CIMB and Petronas Chemicals.

At 9.03am, the FBM KLCI fell 7.73 points to 1,484.16. Turnover was 38.31 million shares valued at RM29.31 million. There were 33 gainers, 173 losers and 74 stocks unchanged.

BAT was the top loser, down 28 sen to RM46.02, Genting 20 sen lower to RM10.56, Bursa 13 sen to RM6.66 while MMHE shed 10 sen to RM6.20.

CIMB lost ine sen to RM7.48, PetChem seven sen to RM6.38 and AirAsia six sen to RM3.84.

CIMB Equities Research said in its market outlook that the rally was running out of steam after trading volume declined on Monday.

'Prices have rebounded back to its 62% FR levels of its July-September fall in three waves, which suggest that the stage is set for a reversal. It has also rallied to the underside of the previous uptrend channel, which is likely to act as resistance.

'Furthermore, the 1,500 psychological resistance is also likely to cap gains today. To close the 1,470-1,480 gap would likely be the first signal that this rebound is exhausted. Time to lock in profits,' it advised investors.

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