Monday, 16 April 2012

Global economic concerns weigh on KLCI

KUALA LUMPUR (April 16) : Malaysian stocks fell on Monday morning in tandem with regional peers following a weaker close across US markets last Friday. Global equities were hit by fresh concerns on the European debt crisis besides news that China’s first quarter economic growth came in below street forecast.

Analysts foresee a correction in the FBM KLCI this week against a backdrop of weak technical indicators and still-volatile global landscape.

“Moreover, weaker-than-expected economic numbers from the US due to weak jobs growth in March, drop in consumer confidence and more than forecast jobless claims does not augur well for growth in the world's largest economy, hence, increasing correction potential.

“Additional worries in Asia after China's economy expanded by 8.1% in the first quarter, the slowest pace since 2009, could exert further downward pressure for the local market this week,” TA Securities Holdings Bhd wrote in note.

At 10am, the FBM KLCI fell 4.89 points to 1,598.23. Across the exchange, some 184 million shares worth RM109 million were traded, leading to 163 gainers versus 237 decliners.

Among top gainers JAYA TIASA HOLDINGS BHD [] added 60 sen to RM9.68 while TA ANN HOLDINGS BHD [] was up 13 sen to RM6.69.

Decliners HONG LEONG FINANCIAL GROUP BHD [] fell 20 sen to RM12.24 while DUTCH LADY MILK INDUSTRIES BHD [] was down 18 sen to RM 35.40

Most active was INGENUITY SOLUTIONS BHD [] which traded unchanged at 10 sen with some 23 million shares done.

Among Asian bourses, Japan’s Nikkei 225 fell 1.44% to 9,499.33 points while Australia’s S&P/ ASX 200 declined 0.61% to 4,296.9. South Korea’s Kospi was down 1.14% to 1,985.98.

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