Midday Market KLCI dips as US government shut down keeps sentiment nervy

by **Cals** Thu 03 Oct 2013, 14:28

Midday Market KLCI dips as US government shut down keeps sentiment nervy

Business & Markets 2013

Written by Surin Murugiah of theedgemalaysia.com

Thursday, 03 October 2013 12:41

KUALA LUMPUR (Oct 3): The FBM KLCI fell at the midday break on Thursday, as U.S. President Barack Obama and congressional leaders met to hammer out a deal to reach an early end to the budget impasse that has now partially shut down the US government.
At 12.30pm, the FBM KLCI shed 0.22 points to 1,770.13.
Losers overtook gainers by 307 to 282, while 334 counters traded unchanged. Volume was 940.95 million shares valued at RM527.52 million.
The top losers in the morning session included Puncak, Aeon, Genting PLANTATION []s, Sungei Bagan, MAHB, KPS, Kamdar, Panasonic and LPI Capital.
The actives included Karambunai, TMS, Asia Bio, Pelikan, Sersol, IRCB, HWGB and Sona Petroleum.
The gainers included BAT, The Store, Petronas Dagangan, Tasek, UMW, BHIC, Public bank, KPJ, Pos Malaysia and UBB.
Hong Leong IB Research maintained that the recent 8.7% relief rally from 1660 (28 Aug) to a high of 1805 (20 Sep) looked stretched and could be due for a potential pullback to as low as 1,754 (38.2% FR) and 1,736 (50% FR) support levels, given the lingering concerns on the U.S government shutdown and debt ceiling deadlines, upcoming UMNO election (19 Oct) and the tabling of Budget 2014 (25 Oct).
“Technically, a quick rebound above the 10-d SMA or 1783 in the next 1-2 day is necessary to prevent further selldown towards 1736-1754 key supports. A rebound above 1783 will spur prices higher to 1800, 1805 (20 Sep high), 1812 (25 July high) and 1826 (all time high).
“Reiterate take profits/sell into any rallies strategy,” it said.
Elsewhere, the U.S. dollar stayed under pressure on Thursday while share markets flatlined as the U.S. government shutdown dragged on with no obvious end in sight, stirring unease about the country's economy and its debt ceiling, according to Reuters.
With investors choosing discretion as the better part of valour, MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed, after a flat performance on Wednesday, it said.