Friday, 11 May 2012

KLCI edges down at mid-morning in choppy trade

KUALA LUMPUR (May 11): The FBM KLCI edged lower at mid-morning on Friday in choppy trade, in line with the tepid sentiment at key regional markets, and weaker overnight close at Wall Street.

The FBM KLCI edged down 0.01 of a point to 1,588.05 at 10am.

Losers led gainers by 201 to 157, while 243 counters traded unchanged. Volume was 222.23 million shares valued at RM1110.91 million.

BIMB Securities Research in a note Friday said that with Spain currently on a downward economic spiral with Greece scrambling for a government coalition, the US came out with another after market “surprise” that JP Morgan made a US$2bn trading loss.

It said that though the Dow Jones Industrial Average eked out a 20 point gain to 12,855, the JP Morgan incident should dampen investors’ mood.

European markets staged a relief rally of sorts with most ended up in positive territory which we believe could be short lived, it said.

Already, the Spanish banks are crying for help with bail-outs next on the agenda. Regional performances were mixed with Malaysia again defying gravity to chalk up a 3.16 point gain to 1,588.06, it said.

"It is interesting to note that investors’ risks tolerance is higher now with the absence of any panic selling.

"Mirroring our sentiments, we expect the FBM KLCI to trend within a narrow band over the short term of between 1,580-1,600 and expect some downward bias today," it said.

Among the major decliners at mid-morning on Bursa Malaysia were PPB, Tasek, GAB, Orient, Subur Tiasa, MSM, Amway, Century Logistics and Petronas Gas.

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