KUALA LUMPUR (June 22): The FBM KLCI slipped below the 1,600 point level in early trade in line with the retreat at key Asian markets, on resurfacing concerns of a global economic slowdown.
At 9am, the FBM KLCI shed 1.73 points to 1,599.70, dragged by losses at key blue chips.
There were 59 losers and 5 gainers, while 32 counters traded unchanged. Volume was 4.29 million shares valued at RM1.91 million.
Asian investors offloaded shares as soft U.S. industrial data on Thursday stoked worries over a slowdown in manufacturing growth worldwide, according to Reuters.
ECM Libra Research has maintained Neutral on the Malaysian market as a whole, with more downside risk.
It its Malaysia strategy report released Friday, the research house said its market outlook for 2Q2012 proved to be generally correct, but its market strategy did not fare so well with its sole Overweight call on Construction and Building Materials disappointing.
“For 2H2012, our view is that the FBM KLCI will trade around our year-end target of 1604 (± 1.6%), until Parliament is dissolved for GE13 (General Elections) which could then trigger a correction to 1487.
“As our expected trading range of 1487-1630 is a swing of 10%, we continue to be Neutral on the Malaysian market as a whole, with more downside risk. We maintain our Overweight on Construction and Building Materials,” it said.
Among the early decliners were Petronas Dagangan, Genting, Petronas Chemicals, MISC, WCT, Kumpulan Europlus, Media Prima, YTL Corp, Genting Malaysia and DiGi.