Published: Monday June 25, 2012 MYT 12:59:00 PM
KLCI eases after rallying to historic intra-day high of 1,611
By Joseph Chin
KUALA LUMPUR: The FBM KLCI hit an all time intra-day high of 1,611.50 on Monday morning but the lack of strong follow-through buying, coupled with the weaker regional markets saw the index easing off by midday.
At 12.30pm, the FBM KLCI was up 2.63 points or 0.16% to 1,605.70. Turnover was 637.29 million shares valued at RM509.21mil. There were 328 gainers, 247 losers and 318 stocks unchanged.
The decline of most regional markets was due to worries there was no quick term fix for the euro zone crisis.
South Korea's Kospi lost 1.4% to 1,821.53; Shanghai's Composite Index slipped 0.56% to 2,248.23; Taiwan's Taiex fell 0.66% to 7,174.61; Singapore's Straits Times Index 0.44% lower at 2,815.73 and Japan's Nikkei 225 fell 0.39% to 8,764.35.
However, Hong Kong's Hang Seng Index added 0.34% to 19,060.11.
US light crude oil rose 48 cents to US$80.24 and Brent 40 cents higher to US$91.38 while spot gold was unchanged at US$1,572.40. The ringgit weakened against the US dollar to 3.1927. Crude palm oil third-month futures rose RM96 to RM3,049.
On the market outlook, Hwang DBS Vickers Research believed the 30-stock index might temporarily overshoot on the upside. It said this could open a window of opportunity for investors to sell into strength.
Meanwhile, Maybank Invetsment Bank Research said as Malaysia prepares for the coming general elections, there was a possibility political uncertainty could cause investors to adopt an eventual risk-off approach.
"The FBM KLCI index is in overbought and bearish divergent weekly territory and the Elliott Wave count suggests temporary bullishness and an attempt to move above 1,609.33 to fresh highs.
"Local index support may maintain a good technical picture for several large upcoming IPOs. However, as the index makes new highs, there are opportunities to take profits on rallies," said Maybank Research.
Among the top gainers were Pharmaniaga, up 85 sen to RM9.85, SAM 33 sen to RM3.38 and Apex 30 sen to RM1.25.
Luster was the most active with 140.90 million shares done, down three sen to 15.5 sen while the warrants shed 1.5 sen to 11 sen.
Dutch Lady fell the most, down 50 sen to RM36 with 8,900 shares done. Tradewinds fell 12 sen to RM9.25 and Aeon 11 sen to RM9.10.
Takaful, whose share price had surged in recent weeks, lost seven sen to RM6.05.