KUALA LUMPUR (May 8): The FBM KLCI reversed its losses from early trade on Tuesday and was up at mid-morning, in line with the recovery at most regional markets.
At 10.01am, the FBM KLCI edged up 2.03 points to 1,586.90.
Gainers led losers by 220 to 132, while 227 counters traded unchanged. Volume was 243.81 million shares valued at RM122.88 million.
Meanwhile, regional shares and riskier assets recovered on Tuesday from the previous day's plunge, as sentiment improved on hopes Spain would use public funds to bolster its struggling banks, although wariness remained over Greece, according to Reuters.
U.S. stocks ended nearly flat and most European markets rose after an anti-austerity backlash by voters in Greece and France caused initial jitters across markets, sending the euro and Asian stock markets to their lowest levels in three months, it said.
BIMB Securities Research in a note Tuesday said it would be interesting to observe the happenings over in Europe now that France and Greece with their new administration may reject the proposed austerity measures for both countries.
As such, the uncertainty from the Eurozone may be prolonged with expectations that the EURO may weaken ahead from more injection of funds into the system, it said.
With Spain also in the limelight, this could be an interesting three corner battle for the ECB, it said.
Meanwhile, investors are taking these developments in their stride as bargain hunting emerged pushing the Dow Jones Industrial Average off its low to 13,008 (-29.74), it said.
“European bourses also rebounded from last week’s weaknesses to close mixed. Regionally, Asian markets experienced profit taking activities as most ended up in negative territory.
“Domestically, the FBM KLCI finally close lower at 1,584.87 down 6.17 points taking cue from the weaker regional performance. Due to the lack of fresh catalysts, we expect prevailing consolidation to persist with the 1,580 level acting as the immediate support,” it said.
Among the gainers at mid-morning were Nestle, Kulim, Tong Herr, Nakamichi, Sapura Industrial, Tan Chong, Tradewinds Plantations, Tradewins and MHC.
The actives included TMS, Sanbumi, FFHB, JCY, Maybulk and Sanichi.
Decliners at mid-morning included Lafarge Malayan Cement, Jaya Tiasa, Sarawak Oil Palms, IJM Land, JCY, QL Resources, LPI, Texchem and OIB.