Regional markets in the red

KUALA LUMPUR: Key regional markets including Bursa Malaysia were in the red at the midday break on Wednesday, May 5, as investors took money off the table on fears of a worsening Greek debt crisis.

In China, its benchmark index skidded to a fresh seven-month low and Hong Kong shares slid to a nine-week low while at Bursa Malaysia, the market was broadly lower with losers hammering gainers nearly six to one.

At midday, the FBM KLCI fell 10.5 points or 0.79% to 1,332.29. Turnover 404.35 million shares valued at RM671 million. There were 93 losers, 566 gainers and 202 stocks unchanged.

Hong Kong's Hang Seng Index lost 2.11% to 20,324.73, Shanghai Composite Index 1.17% lower at 2,802.24 and Singapore's Straits Times Index ended the morning session down 1.47% at 2,858.44.

Maybank Investment Research said in its pre-market technical outlook that the FBM KLCI's resistance areas at 1,342 and 1,355 will cap market gains, whilst the weaker support areas for the FBM KLCI are located at 1,325 and 1,340.

"Due to the Dow's major overnight plunge of 225.06 points, we expect the FBM KLCI to fall initially to be followed by
some local bargain hunting later today. We believe that the FBM KLCI is supported by local funds and might be resilient amidst global adversity," it said.

Maybank Research said the bearish divergent signals suggest that the FBM KLCI may be stalling as it rises. Short-term trading or scalping the market would be the best market strategy.

"For now, we believe that the market could be very volatile and wild. Therefore, trade with a very short-term horizon. In the longer term, we believe that the FBM KLCI may be peaking and a downside possibility may emerge if local funds start selling as well," it said.

Among the index-linked stocks, Sime fell 21 sen to RM8.55 on concerns over cost overruns at the Bakun dam project, dragging the index down by 3.03 points.

BAT fell the most, down 48 sen to RM44, KL Kepong 32 sen to RM16.38, LPI 28 sen to RM15.46, Tanjong 16 sen to RM17.72.

Cepco lost 25 sen to RM2.05, Tan Chong 17 sen to RM4.23 while glove makers Latexx-WA shed 15 sen to RM3.10 and Hartalega 14 sen to RM7.63.

KNM was the most active with 20 million shares done, unchanged at 51.5 sen.

Yee Lee rose the most, up 10 sen to RM2.58, Century seven sen to RM1.67 and Proton four sen higher at RM4.84.