Market Open KLCI falls 0.32% amidst global growth worries

by **Cals** Wed 12 Jun 2013, 10:00

Market Open KLCI falls 0.32% amidst global growth worries
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Wednesday, 12 June 2013 09:22

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KUALA LUMPUR (June 12): The FBM KLCI fell 0.32% in early trade on Wednesday, in line with the retreat at most global markets.

At 9.15am, the FBM KLCI fell 5.72 points to 1,773.85.

Losers beat gainers by 190 to 68, while 161 counters traded unchanged. Volume was 96.33 million shares valued at RM70.56 million.

The top losers included UMW, Petronas Dagangan, Genting, MISC and Bursa Malaysia.

BIMB Securities Research in a market preview Wednesday said shares in Europe ended lower as investors were disappointed with the BOJ refrained from taking fresh steps to boost the economy, adding to anxiety about reduced easing from central banks globally.

The research house said this also caused Wall Street to close sharply lower with all key S&P sectors closing in the red.

The Dow Jones Industrial Average and S&P500 lost 0.76 percent and 1.02 percent respectively to finish at 15,122.02 and 1,626.13 respectively, it said.

BIMB Securities said key regional indices were mostly in red following the BOJ’s policy.

Meanwhile the local market ended lower, inline with the regional performance with the FBM KLCI slipping 8.23 points to 1,779.57, slightly below its immediate support line, it said.

“Trading participation shows net buying from local retail and institutions while foreign institutions were net sellers.

“We believe the local market to pull back slightly further today following negative sentiment all over the world. Expect to see immediate support at 1,775/70 while resistance at 1,785/90,” it said.

Meanwhile, Japanese stocks slumped further on Wednesday, joining a global selloff in equities and commodities as investors were rattled by the absence of fresh steps from the Bank of Japan to calm turbulence in the domestic bond market, according to Reuters.

U.S. stocks slipped in a volatile session while European shares fell to six-weeks lows on Tuesday on concern that central bank support for markets was turning more cautious, as the BOJ's move came amid persistent speculation about the U.S. Federal Reserve toning down its strong stimulus later in the year, it said.