Market Open Not an august start for KLCI, dips 0.29% in early trade

Market Open Not an august start for KLCI, dips 0.29% in early trade
Business & Markets 2013
Written by Surin Murugiah of theedgemalaysia.com
Thursday, 01 August 2013 09:13

KUALA LUMPUR (August 1): The FBM KLCI fell 0.29% in early trade on Thursday, weighed by losses at blue chips including Maybank and Public Bank.

At 9.05am, the FBM KLCI fell 5.13 points to 1,767.49.

Gainers led losers by 88 to 65, while 129 counters traded unchanged. Volume was 38.82 million shares valued at RM30.18 million.

The top losers included KLK, Petronas Gas, Maybank, PPB, Public Bank, Affin, Dutch Lady, Country View and Carlsberg.

BIMB Securities Research in a market preview Thursday said investors remained edgy after the US posted a higher than expected 2Q GDP growth of 1.7% despite the Feds stance to maintain its QE policy for now with the focus now on the US job data to be out tomorrow.

It said that as a result, the Dow Jones Industrial Average after a rather choppy day closed 21 points lower at 15,499.

European markets were mixed to firmer over the improving US economy, it said.

The research house said that meanwhile, Asian stocks were lower due to the lack of direction from the US.

The local bourse was sharply lower as investors took Fitch’s sovereign downgrade on Malaysia as excuse to take profit, it said.

BIMB Securities said the FBMKLCI was down 22.46 points at 1,772.62 breaking multiple supports levels.

“As mentioned earlier, foreign funds in Malaysia are sitting on potentially solid gains and will have no remorse when decided to lock in the profits. Yesterday saw a net outflow of RM436m and may trigger further outflows as these funds are becoming more and more anxious.

“Therefore, we may see further downside to the benchmark index with the 1,765/70 as the immediate support level,” it said.