Hot Stocks Investors sell blue chip shares on weaker China PMI

by **Cals** Thu 02 Jan 2014, 13:48

Hot Stocks Investors sell blue chip shares on weaker China PMI

Business & Markets 2013

Written by Chong Jin Hun of theedgemalaysia.com

Thursday, 02 January 2014 12:23

KUALA LUMPUR (Jan 1 ): Malaysia's blue-chip stocks dominated the exchange's largest-decliners' list at about noon as investors digested weaker economic data from China.

The decline in blue-chip stocks had resulted in an 11-point fall in the FBM KLCI. At 11.47am, six of Bursa Malaysia's 10 largest decliners were KLCI-linked entities.

Among blue-chip firms, top decliner Kuala Lumpur Kepong Bhd fell 54 sen to RM24.36 while Public Bank Bhd declined 30 sen to RM19.10. Tenaga Nasional Bhd dropped 18 sen to 11.20.

Reuters reported that Asian markets got off the new year to a sluggish start as Chinese economic data disappointed ahead of a raft of reports on global manufacturing due out through the session.

China's official Purchasing Managers' Index fell to 51.0 in December, from 51.4 the previous month and below forecasts for 51.2.

Malaysia's KLCI has seen fresh highs, hence, analysts have predicted that investors may take profit today.

"A profit-taking correction should follow-through after the year-end window-dressing action, as overbought momentum would encourage profit-taking retracement," TA Securities Holdings Bhd wrote in a note today.

Meanwhile, Maybank Investment Bank Bhd said the KLCI's resistance levels of 1,866 and 1,882 may curb the index's gains.

"We recommend a “nibble on dips” stance for the index. Due to the firmer US performance, we expect the FBMKLCI to be volatile in a new lofty all-time high range," Maybank said.