KUALA LUMPUR (June 1): The FBM KLCI kicked off June on a weaker tone, weighed by tepid external sentiment and losses at key blue chips at mid-morning on Friday.
At 10am, the FBM KLCI fell 8.20 points to 1,572.47, erasing much of its gains in the prior month.
Losers edged gainers by 179 to 129, while 161 counters traded unchanged. Volume was 126.9 million shares valued at RM92.85 million shares valued at RM92.85 million.
Asian shares and the euro extended losses on Friday as China's factory activity data delivered its weakest reading this year, highlighting concerns the worsening euro zone debt crisis will further undermine global economic growth, according to Reuters.
Japan's Nikkei fell 1 percent after registering its biggest monthly drop in two years in May and was set for its worst weekly losing streak in 20 years, it said.
China's official purchasing managers' index (PMI) fell to 50.4 in May, down from April's 13-month high of 53.3 and below the 52.2 forecast, the latest sign that Chinese output is cooling, said Reuters.
At the regional markets, Japan’s Nikkei 225 fell 0.96% to 8,460.30, Hong kong’s Hang Seng Index lost 0.50% to 18,535.60, the Shanghai Composite Index shed 0.24% to 2,377.89, Taiwan’s Taiex lost 1.61% to 7,183.59, South Korea’s Kospi fell 0.76% to 1,829.49 and Singapore’s Straits Times Index was down 0.82% to 2,749.84.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in note to clients Friday said teh FBM KLCI's resistance areas of 1,582 and 1,600 would cap market gains, whilst the weaker support areas are located at 1,566 and 1,580.
"Due to the US markets’ minor decline last night, we may see a benign day here today. After surging from the 1,310.53 low, the index stalled at 1,609.33 (3 Apr) and broke below the key low of 1,566.55 recently. Sell any low-volume rebounds on the local market, as the foreign indices are still weak.
Lee said “Sell in May and go away” will still hold true in 2012.
"A rise above 1,567 two days ago however alleviated the downward selling pressure. But it may unwise for the Malaysian barometer index to buck wild global downtrends eventually," he said.
On Bursa Malaysia, PPB was the top loser at mid-morning and fell 52 sen to RM16.48, APM Aumotive lost 16 sen to RM4.84, MAHB 15 sen to RM5.65, AFG 13 sen to RM3.97, Panasonic, KLK, Dutch Lady and Tenaga fell 10 sen each to RM21.60, RM22.62, RM32.94 and RM6.57 respectively, while Sarawak Oil Palms and Maybank fell nine sen each to RM6.12 and RM8.66.
Globaltec was the most actively traded counter with 28.8 million shares done. The stock fell half a sen to 10 sen.
Other actives included Key West, Sanichi, Asio Bio, Ariantec, DPS, SYF Resources and DSC Solutions.
Gainers included MNRB, Mentiga, Top Glove, Keck Seng, Nestle, Bursa, Petra Energy, Petronas Gas, SCGM and Pasdec.