Asian markets end on firmer note

Written by Insider Asia
Friday, 11 December 2009 18:10

Shares on most Asian markets traded on a steadier footing on Friday. Sentiment had been weak for the better part of the week as investors grappled with growing concerns over mounting debt at government as well as corporate levels. Their jitters were underscored by several highly publicised credit-rating cuts earlier this week.

Hence, many investors were probably relieved to see trading end on a firmer footing on the last day of the week. Wall Street’s stronger close overnight is likely to have helped bolster flagging confidence.

US stocks finished higher overnight after stronger-than-expected exports pared the country’s trade gap in October. The market had been expecting an increase in the trade deficit. The drop in the value of the greenback against most other currencies, not least the yen and euro, made US goods more competitive in the global market.

Investors also took comfort in the four-week average jobless claims figure, which fell to the lowest since September 2008 – even though new claims for last week rose more than expected.

Nevertheless, investors remain generally cautious. Economic data has been mixed indicating an uneven recovery in the near to medium term. While stock prices will react to day-to-day developments, we do not expect a drastic shift in investors’ current investing stance pending greater clarity on the longer-term picture.

On the local bourse, the FBM KLCI opened in positive territory but lost ground as the day progressed. The benchmark index ended just a shade higher at 1,260 points. At the close, the number of losing and gaining stocks was almost at par.

Trading volume dipped again on Friday with less than 529 million shares changing hands. Affin-WC was the most heavily traded counter for the day. Other actives include LCL, Eti Tech, DSC Solutions, KNM and Affin-CA.