Market Open KLCI falls 0.1% ahead of central banks’ meetings

Market Open KLCI falls 0.1% ahead of central banks’ meetings
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Tuesday, 30 July 2013 09:33

KUALA LUMPUR (July 30): The FBM KLCI which opened in positive territory, erased gains amid anticipation of the US, European, and UK central banks’ likely monetary stance which can dictate the direction of global equities.

At 9.14am, the KLCI fell 1.97 points or 0.1% on losses in stocks like MALAYAN BANKING BHD [] and CIMB Group Holdings Bhd.

Hong Leong Investment Bank Bhd research head Low Yee Huap said the KLCI "is likely to trade cautiously" as investors focus on the meetings of the US Federal Reserve, European Central Bank and Bank of Englan this week.

From a technical viewpoint, Low said downward pressure on the KLCI has accelerated.

"A decisive breakdown of key 1,867 support will trigger further sell down towards 1,775 and 1,762 supports. Key resistance remains at 1,810 and all-time high of 1,826," Low wrote in a note this morning.

Bursa Malaysia saw some 298 million shares worth RM116 million changing hands. There were 123 gainers versus 79 decliners.

The top gainer was PETRONAS DAGANGAN BHD [] while Fraser & Neave Holdings Bhd led decliners. The most-active entities were newly-listed Sona Petroleum Bhd warrants and shares.

Across Asia, Japan's Nikkei 225 rose 0.28%, South Korea's Kospi added 0.5% while Australia's S&P/ASX200 fell 0.34%

Bloomberg reported that most Asian stocks rose, with Japan’s Topix index heading for its first advance in five days as the yen weakened, offsetting a bigger-than-estimated decline in Japanese factory output.

The MSCI Asia Pacific Index rose 0.1 percent to 133.32 as of 9:33 a.m. Tokyo time, with about three shares rising for every two that fell.