Market Close KLCI down slightly but small caps sizzle

Market Close KLCI down slightly but small caps sizzle
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Thursday, 21 March 2013 17:48


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KUALA LUMPUR (March 21): The stock market, which saw the return of activity in small cap and penny stocks, ended slightly lower after another day of volatile trades, amid local pre-election caution and brighter economic outlook.

Externally, while a pick-up in Chinese factory activity and a commitment by the U.S. Federal Reserve to its aggressive stimulus stance soothed sentiment, markets were rattled by wrangling over a bailout plan for Cyprus.

“The market sentiment is positive because there is some good news flow. Investors are getting excited with stocks linked to Iskandar Malaysia, CONSTRUCTION [] and property. We also see the return of speculative stocks,” said a dealer.

The central bank announced yesterday the local economy is projected to grow 5-6% this year, largely powered by a 15.9% growth in the construction sector and 15% growth in private investments seen for 2013.

At 5.00 pm market close, the key FBM KLCI dropped by 0.79 point to 1630.75. Gainers led losers by 461:224 with total turnover of 1.2 billion shares valued at RM1.85 billion.

The KLCI was supported by large cap gainers in Maybank, Axiata, Sime Darby, CIMB and UEM Land but the support was negated by BAT, Genting, Genting Malaysia and UMW.

Stocks with Iskandar theme continued to outshine others, with UEM Land, Tebrau Teguh and Ekovest stealing the limelight.

The key construction stocks that supported the index were construction giants IJM Group Bhd and GAMUDA BHD [].

In the active list, nine out of ten were gainers, with one staying flat at close. These were led by Muhibbah Engineering, Zelan and Tebrau.

In Asian late trades, European shares and the euro dipped on Thursday because of concerns over Cyprus but a pick-up in Chinese factory activity and the U.S. Federal Reserve's commitment to its loose policy stance limited the losses.

Data showing French Purchasing Managers Indexes (PMI) shrank in March at the fastest pace in four years added to investor's worries, Reuters reported.

European shares fell across the board with the FTSE Eurofirst 300 index down around 0.5% and London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX around 0.7% lower.

Earlier Asian shares were lifted when the HSBC Purchasing Managers' Index for China showed a rise to 51.7 in March from 50.4 in February, pointing towards solid but not spectacular first-quarter growth in China’s economy.

Japan’s Nikkei closed up 1.34% at 12,635 but Hong Kong shares erased early gains, with the Hang Seng Index closed down 0.1% at 22,225.9.

Singapore’s STI closed up 0.59% at 3267.65.