Share prices open lower on profit taking

KUALA LUMPUR, Jan 8 – Share prices on Bursa Malaysia opened lower, in early trade, as investors took profits after yesterday’s gains, dealers said.

After 37 minutes of trading, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 7.29 points to 1,686.87, after opening 2.8 points lower at 1,691.36.

HwangDBS Vickers Research said the local bourse may follow the market pattern of Wall Street, which was consolidating its recent gains with its key equity indices slipping between 0.1 per cent and 0.4 per cent last night.

“On the chart, the benchmark FBM KLCI, after a tiny 0.1 per cent rise yesterday, is expected to swing sideways between its immediate support and resistance levels of 1,685 and 1,700 points ahead.

“Nevertheless, we will probably see more action in the small and mid-cap space to be driven by rotational play, continuing yesterday’s performance in the FBM 70 Index and the FBM Small Cap Index,” it added.

Local corporate developments would aid stocks like Perdana Petroleum, which  secured a letter of award for the supply of four units of vessels worth RM430 million.

Others include Malaysian AE, which won a RM140 million sub-contract job for ship loading facilities in Sabah and Kumpulan Jetson which secured a RM84 million turnkey hotel project in the United Kingdom.

On the scoreboard, the Finance Index erased 56.42 points to 15,324.96, the Industrial Index declined 10.46 points to 2,800.98 and the Plantation Index fell 43.94 points to 8,258.75.

The FBM Emas Index gave up 42.93 points to 11,470.86, the FBMT100 slipped 43.70 points to 11,318.03, the FBM Mid 70 Index lost 24.60 points to 12,486.31 and the FBM Ace Index was 33.16 points lower at 4,242.18.       

Losers led gainers 109 to 181 with 198 counters unchanged, 1,148 untraded and 29 others were suspended.

Volume was thin at 160.71 million shares worth RM105.343 million.

Among actives, Asia Media-WA rose 6.5 sen to seven sen, Scomi Group added half-a-sen to 37.5 sen while Asia Media fell half-a-sen to 20 sen.

Heavyweights, Maybank was lower at RM9.05, Sime Darby lost nine sen to RM9.56 while Axiata was flat at RM6.71.

The ringgit strengthened against the US dollar for the second consecutive day due continued buying interest for the local unit, dealers said. 

At 9.15am, the local unit was quoted at 3.0395/0425 against the greenback compared with 3.0415/0445 at 5 pm on Monday and is expected to hover between 3.0300 and 3.0400 throughout the day.

They said a lack of economic data from the US reduced the appeal for the currency but corporate earnings announcements and comments from Federal Reserve officials, expected later this week, is expected to aid the greenback.

Last week, two US Federal Reserve top officials said asset purchase this year could be halted and its bond programme changed.

Against the Singapore dollar, the ringgit was lower at 2.4744/4782 from 2.4665/4710 yesterday and eased against the Japanese yen to 3.4733/4775 from 3.4645/4691 previously.

It fell against the British pound to 4.8960/9024 from 4.8789/8846 today and depreciated against the Euro to 3.9851/9896 from 3.9616/9658 yesterday. – Bernama



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