Monday, November 21, 2011

KLCI continues to fall for fifth day

KUALA LUMPUR (Nov 21): External economic uncertainties and tepid investor sentiment at global markets dragged the FBM KLCI lower for the fifth day running on Monday.

At 10am, the FBM KLCI fell 17.02 points to 1,437.38, weighed by losses at select blue chips.

Losers beat gainers by 394 to 79, while 168 counters traded unchanged. Volume was 354.53 million shares valued at RM186.79 million.

Asian shares fell on Monday as uncertainty remained over how euro zone leaders would respond to mounting funding difficulties for European banks, according to Reuters.

U.S. stock index futures opened lower on Sunday, with Dow Jones and S&P 500 futures briefly dropping more than 1 percent as the U.S. congressional deficit-reduction committee looked set to fail to bridge partisan differences over taxes and spending going into the 2012 elections, it said.

At the regional markets, Hong Kong's Hang Seng Index lost 2.09% to 18,103.86, Taiwan's Taiex fell 1.84% to 7,100.96, South Korea's Kospi was down 1.43% to 1,812.82, Singapore's Straits Times Index lost 0.99% to 2,703.26, the Shanghai Composite Index fell 0.40% to 2,406.82 while Japan's Nikkei 225 shed 0.22% to 8,356.07.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Nov 21 said that although the tone of the global indices had improved, worries on high borrowing costs for the Italian and Spanish governments could eventually put those countries into a downward 'Grecian-like' spiral.

As such, he advised investors to trade with a relevant index and stock level stop-loss.

'We particularly do not like the speculative penny stock plays, as these stocks generally do not have any fundamentals at all.

'Also, we do note some foreign selling on shares on stocks (like CIMB and Genting), and this might not bode well for the FBM KLCI and ringgit, too,' he said.

Among the losers on Bursa Malaysia at mid-morning, Nestle fell 50 sen to RM48.50, PPB down 42 sen to RM16.10, Panasonic down 40 sen to RM19.40, KLK 36 sen to RM20.72, MISC 29 sen to RM6.16, Hong Leong Bank 28 sen to RM10.26, Petronas Gas 22 sen to RM13, while Fima Corp, BAT and UMW fell 20 sen each to RM5.90, RM46.50 and RM6.23.

Compugates was the most actively traded counter with 30.7 million shares done. The stock gained half a sen to 8.5 sen.

Other actives included Fastrak, Flonic, DPS Resources, Tiger, Extol, Frontken, SYF Resources, Karambunai and Sanichi.

Gainers included Aturmaju, DiGi, Harvest Court, RHB Capital, MAHB, Glenealy, Ekovest and BRDB.


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