Midday Market KLCI turns negative at break, blue chips weigh

by **Cals** Mon 22 Apr 2013, 14:08

Midday Market KLCI turns negative at break, blue chips weigh
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Monday, 22 April 2013 12:37

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KUALA LUMPUR (April 22): The FBM KLCI dipped at the midday break on Monday, weighed by losses at select blue chips.

The FBM KLCI shed 0.37 points to 1,705.91, as the market continued to remain choppy ahead of the general election on May 5.

Market breadth turned negative with 356 losers and 170 gainers, while 241 counters traded unchanged. Volume was 395 million shares valued at RM505.34 million.

Among the top losers in the morning session were Nestle, MISC, Aeon Credit, F&N, KLK, Genting, Genting PLANTATION []s, HLFG and Top Glove.

The actives included K-Star, Astral Supreme, Metronic, MISC, Tiger Synergy, Nextnation, and CLIQ.

The gainers included Jerasia, Box-pak, Hong Leong Capital, UME, I-BHD [], Petronas Dagangan, Petronas Gas, Tan Chong, HDBS and Dayang Enterprise.

Affin IB Research head of retail research Dr Nazri Khan said following the bearish performance of the global stocks and the sharp correction in the regional stocks, he expects the local index, FBM KLCI to stage a temporary decline to neutralize its overbought situation.

“Despite the strong catalyst of local General Election, we believe the local equity market may have a choppy time as investors pricing in concerns about the weaker prospects for global economic growth,” he said in a note Monday.
Meanwhile, bulls drove Japanese shares to nearly five-year highs as yen bears clawed at the symbolic 100 yen/dollar door after the Group of 20 gatherings in Washington all but endorsed the Bank of Japan's aggressive reflation drive, according to Reuters.

The dollar was trading at 99.78 yen, after earlier rising to 99.89, just below a four-year high of 99.95 yen hit on April 11, it said.

In a communique after a two-day meeting on Friday, the G20 simply said it would be "mindful" of possible side effects from extended periods of monetary stimulus, without singling out Japan as some in the markets had feared, said Reuters.