Quiet pre-holiday trading

Written by InsiderAsia
Friday, 12 February 2010 17:27

Trading on the Bursa Malaysia stayed relatively quiet on Friday, Feb 12, ahead of the long Chinese New Year holidays. The stock exchange will be closed Monday and Tuesday.

Trading volume dwindled further – to just 560 million shares on Friday from Thursday’s already low level of 646 million shares.

Some investors are already away for the long break. Other investors preferred not to enter the market aggressively, so as to not expose themselves to Wall Street’s volatility and external risks. Upon resumption of trading after a long break, the stock market tends to adjust itself depending on how Wall Street and regional markets fared.

The FBM KLCI was in positive territory throughout the day, ending the day up four points at 1,253.4. Market breadth was positive, with advancing stocks beating declining ones by a three-to-one margin.

Actively traded stocks include Talam, KNM, LCL and Axiata. Gainers include Hai-O, PPB, Daiboci and 3A Resources. The losers were mostly smaller stocks, which fell on thin volume.

Regional stock markets were also mostly in positive territory on the day, taking their lead from Wall Street’s positive close and optimism that Europe will come to the rescue of Greece and stave off a broader crisis among the weaker countries in the Eurozone. Sovereign risk concerns over Greece, Portugal, Spain and weaker European countries had weighed heavily on investor sentiment in recent weeks.

Adding to positive sentiment was a better-than-expected US economic report showing first-time claims for jobless benefits fell more than expected last week. Economists hope this will signal an improvement in the dismal labour market, where unemployment remains stubbornly high and is placing a drag on consumer spending and sustainable growth.

Trading next week will likely be subdued due to the Chinese New Year holidays and the closure of many regional markets, including Singapore and Hong Kong. Trading will continue to be dictatated by Wall Street’s performance, and the details, if any, of the rescue plans for Greece.

We wish our readers Happy Chinese New Year.