FBM KLCI in the red at midday

Written by Chong Jin Hun
Monday, 22 March 2010 12:48

KUALA LUMPUR: Asian stock markets including FBM KLCI dived into a sea of red at midday Monday, March 22 as investors priced in the impact of further interest rate hikes by regional policymakers, besides the effects of advanced economies' public debt.

Analysts said most technical indicators on Malaysia's FBM KLCI were pointing towards further losses ahead for the gauge.

"As such, investors can expect a continuation of correction for at least early this week, before more significant buying support emerges at lower support levels," TA Securities Holdings Bhd wrote in note to clients.

"Moreover, the surprise increase of interest rates in India should dampen regional sentiment this week which would hence spillover to the local front."

At 12.30pm, the FBM KLCI fell 1.21 points to 1,295.39. Across the exchange, a total of 180 stocks gained compared to 361 decliners, resulting in 316.28 million shares worth RM456.02 million transacted.

Top gainer JERNEH ASIA BHD [] rose 51 sen to RM2.75 while the biggest decliner Tanjong plc fell 26 sen to RM17.70. Most active was Talam Corp Bhd which was up 0.5 sen to 12 sen with some 31 million shares done.

Across Asian markets, notable decliners include Hong Kong's Hang Seng which fell 1.85% to 20,974.53, and South Korea's Kospi which was down 1.04% to 1,668.58. Australia's S&P/ASX 200 dipped 0.79% to 4,833.90. Stock markets in Japan are closed for a holiday.

Meanwhile, US crude oil for April 2010 fell 58 cents to US$80.10 a barrel while spot prices for gold advanced US$1 to US$1,108 an ounce. Malaysian palm oil for May 2010 climbed RM7 to RM2,590 a tonne.

The ringgit was traded at 3.3208 versus the US dollar, 4.9682 against the pound, 4.4883 against the euro , 3.6703 versus the yen and 2.3726 compared to the Singapore dollar.