Published: Friday June 22, 2012 MYT 10:51:00 AM
KLCI off early low, broader market cautious
By Joseph Chin
KUALA LUMPUR: Blue chips fell in the morning session on Friday, but the FBM KLCI was off its early low. However, the broader market displayed caution, as investors took their cue from the selling on regional markets.
At 10.43am, the FBM KLCI was down 1.87 points to 1,599.56 but off the early low of 1,594. Turnover was 463.66 million shares valued at RM306.43mil. Losers beat gainers 323 to 126 while 236 counters were unchanged.
Bloomberg reported the fall in key Asian markets had almost erased this week's gains while South Korea's won weakened as reports added to signs of a U.S. economic slowdown. Bond risk increased after Moody's Investors Service cut ratings on global banks.
The new wire reported a Federal Reserve Bank of Philadelphia index signaled the worst contraction in manufacturing in almost a year, while existing U.S. home sales fell more than forecast and jobless claims exceeded estimates.
Also dampening investors' risk appetite was after Moody's cut credit ratings for Credit Suisse AG and 14 other banks, while the International Monetary Fund said Europe's debt crisis has reached a "critical stage."
The other decliners were Fututec, down 13 sen to 81 sen, Aeon Credit eight sen to RM11.82 and Jaya Tiasa seven sen lower to RM8.79.
However, Luster saw very active trade amid the cautious market, up five sen to 19 sen and it was the most active with 110.62 million shares done. The warrants added four sen to 14.5 sen with 60.34 million units transacted.
MBMR-WA was the top gainer, adding 30 sen to 60.5 sen. Takaful and BIMB resumed their upward trend, with the insurer up 15 sen to RM6.10 and the banking group rising 11 sen to RM3.31.