Blue chips sink further

KUALA LUMPUR: Blue chips came under more selling pressure in early trade on Tuesday, Feb 9, in line with the key regional markets as sentiment took a hit from the overnight fall on Wall Street.

At 9.27am, the FBM KLCI fell 10.78 points to 1,224.44. Turnover was 82.38 million shares valued at RM78.92 million. Losers battered gainers 271 to 41 while 105 stocks were unchanged.

Public Bank foreign lost 22 sen to RM11.04 and Public Bank 18 sen to RM11.02. HL Bank fell 19 sen to RM7.71 and EON Cap 15 sen to RM6.52.

Supermax, Bursa and Genting lost 16 sen each to RM4.70, RM7.24 and RM6.56 while ossan gave up 15 sen to RM5.95.

RHB Research Institute said the market was vulnerable to further downside pressure. The strong selldown yesterday has confirmed the recent technical breakdown to below 1,250 as well as the derailment from the 10-month uptrend on the FBM KLCI, it said.

RHB Research said the recent "dead cross" between the 10-day and 40-day SMAs near 1,265 and 1,276, the FBM KLCI is poised to suffer more setbacks on follow-through selling activities in the coming days.

"In fact, with the Chinese New Year celebration just around the corner, and the uncertainties in the regional markets' performance, especially another 100-points drop in the overnight US DJIA, investors are expected to stay sideline in the near term.

"Hence, this could mean the local benchmark is more vulnerable to further downside pressure towards the 1,200 psychological level," it said.

RHB Research Institute said for now, strong resistances will stay near 1,250, the 10-day SMA of 1,265 and the 40-day SMA near 1,276.