- FBM KLCI would now embark on a major corrective phase, having risen from its March 2009 low of 836.51 to 1,288.42 in November this year without any meaningful correction, says analyst
- "We believe that the FBM KLCI peaked at 1,288.42 on Nov 17, and urge investors to liquidate all their stocks on any and every rally," Maybank head of retail research for equity markets Lee Cheng Hooi wrote in a note on Dec 28.
Shares of financial services and PLANTATION entities lifted the Malaysian equity benchmark till midday Monday, Dec 28 amid substantial gains across regional stockmarkets, and rising commodity prices.
Analysts, however, cautioned that the FBM KLCI would now embark on a major corrective phase, having risen from its March 2009 low of 836.51 to 1,288.42 in November this year without any meaningful correction.
"The market may have rebounded late last week but we expect further profit-taking ahead of the new year-end holidays at this weekend.
"We believe that the FBM KLCI peaked at 1,288.42 on Nov 17, and urge investors to liquidate all their stocks on any and every rally," Maybank head of retail research for equity markets Lee Cheng Hooi wrote in a note on Dec 28.
At 12.30pm, FBM KLCI rose 5.23 points to 1,269.17. Prime movers of the benchmark include CIMB Group Holdings Bhd which rose 16 sen to RM13.00 and MALAYAN BANKING BHD [ ] which gained nine sen to RM6.89.
Oil palm plantation companies IOI Corp Bhd rose three sen to RM5.44 while SIME DARBY BHD [ ] was up two sen to RM8.99.
Across the exchange, a total of 261 stocks gained compared to 178 decliners, resulting in 191 million shares worth RM214 million done.
Regional stock indices advanced. Japan's Nikkei 225 rose 1.06% to 10,644.79 points, China's Shanghai SE Composite added 1.67% to 3193.70, and Hang Seng gained 0.8% to 21,689.00. Stockmarkets in Austalia and New Zealand are closed for national holidays.
Commodity prices gained. US crude oil for February 2010 rose 45 cents to USD78.50 as traders anticipate an economic recovery in the US, the world's largest energy consumer, would spur demand for the hydrocarbon fuel.
Meanwhile, spot prices for gold advanced USD7.25 to USD1,112.70. Malaysian palm oil for February 2010 surged RM42 to RM2,579 a tonne.
The ringgit was traded at 3.4255 versus the US dollar, 4.9290 against the euro, 5.4667 against the pound sterling, 3.7428 versus the yen, and 2.4364 compared to the Singapore dollar.
source : theedge
