Wednesday, 25 April 2012

KLCI opens lower, blue chips weigh

KUALA LUMPUR (April 25): The FBM KLCI slipped in early trade on Wednesday, despite improving sentiment at key regional markets following the firmer overnight close at Wall Street.

At 9am, the FBM KLCI shed 0.8 of a point to 1,582.00, weighed by losses at select blue chips.

Gainers led losers by 63 to 29, while 57 counters traded unchanged. Volume was 17.85 million shares valued at RM9.35 million.

Asian shares rose on Wednesday as firm U.S. corporate earnings, signs of an improving U.S. housing market, and healthy demand for euro zone sovereign debt stoked risk appetite, while focus shifted to the Federal Reserve's meeting, according to Reuters.

Markets will be looking for the Federal Reserve's economic assessment and clues to future policy, including the probability of a third round of quantitative easing, when it concludes its two-day policy meeting later on Wednesday, it said.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Wedneday said the FBM KLCI declined 1.52 points to close at 1,582.28 on Tuesday.

“ Its resistance areas of 1,582 and 1,609 will cap market gains, whilst the weaker support areas are located at 1,562 and 1,579.

“Despite the US markets’ better tone last night, we may be in for another day of heavy selling here,” he said.

Among the early decliners on Bursa Malaysia were KLK, HLFG, Telekom, Genting Malaysia, RHB Capital, Gamuda, Bumi Armada, UOA REIT, Sunway and Maybank.

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