Tuesday, December 20, 2011

KLCI dips in early trade on cautious sentiment

KUALA LUMPUR (Dec 20): The FBM KLCI slipped in early trade on Tuesday, as investors turned cautious following the weaker overnight close at Wall Street.

The FBM KLCI fell 2.38 points to 1,475.40 at 9am.

Gainers led losers by 76 to 50, while 117 counters traded unchanged. Volume was 44.23 million shares valued at RM17.38 million.

BIMB Securities Research in a note Tuesday said damaging statements from the ECB that a European contagion effect was very much a reality and that the ECB's hands were tied to purchase more sovereign bonds to ease the liquidity crunch have had added more woes on the Eurozone.

Though European bourses closed mixed, it was the US banks that took the brunt of the sell down hence the 100 point decline of the Dow Jones Industrial Average to a tad below 11,800, it said.

Asian markets ended mostly in the red following news regarding the death of North Korea's leader Kim Jong Il and that a power struggle may ensue, it said.

'Domestically, the FBM KLCI bucked the trend with the index climbing 11 points to almost 1,480 on selective buying on blue chips.

'As for today, we would expect some profit taking to emerge with 1,470 as the immediate support level,' said the research house.

Among the early decliners on Bursa Malaysia were PPB, MAHB, BAT, Aeon, AMMB, Petronas Gas, QSR, Bina Goodyear, KFCH and YTL Corp.

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