KLCI nears March 10 level

KUALA LUMPUR: Stocks continued to extend their losses in early trade Tuesday in the absence of strong fresh leads and concerns about the political developments while external factors including record high oil prices weighed down sentiment.

The KL Composite seemed nearing the March 10 level when it fell to 1,157 after the general elections results.

At 10am, the KLCI was down 9.43 points to 1,165.4. Turnover was 59.29 million shares valued at RM117.52mil. There were 53 gainers, 231 losers and 128 counters unchanged.

Asian markets were mostly higher. Hong Kong’s Hang Seng Index was 1.19% or 261.9 points lower at 21,840.1 while Japan’s Nikkei 225 lost 0.97% to 13,332.28 but Shanghai’s A Share Index rose 0.55% to 2,796.24 and Singapore’s Straits Times Index gained 0.38% to 2,917.91.

Light crude oil was at US$141.99 (RM464.60) per barrel.

In New York, US stocks rose Tuesday, after embattled automaker GM surprised Wall Street with stronger-than-expected June sales and financial shares reversed earlier losses as investors scoured for bargains, overshadowing concerns about record oil prices.

Reuters said the modestly positive start to the third quarter followed the Dow Jones industrial average's worst first six months since 1970.

But concerns about inflation continued to weigh on the market. US crude oil futures closed at a record US$140.97 a barrel on Mideast tensions and supply concerns raised by a report from the International Energy Agency.

The Dow Jones industrial average rose 32.25 points, or 0.28%, to 11,382.26, again avoiding closing in bear market territory.

OSK Investment Research said Tuesday that with the previous support broken, the next key support level for the KLCI was the previous low of 1,157 reached on March 10.

“We would expect the market to languish further in the absence of positive leads,” it said in a research note to clients.

Bursa and PPB fell 20 sen each to RM6.95 and RM10.60 while Boustead Holdings, BCHB and IOI Corp lost 15 sen each to RM5.25, RM7.45 and RM7.25 respectively.

Lion Industries fell 12 sen to RM2.36 while MISC, Public Bank foreign and Tenaga lost 10 sen each to RM8.15, RM10.40 and RM8.05 respectively.

Time Engineering was the most active with 5.16 million shares done, up 1.5 sen to 19.5 sen.

KKB Resources was the top gainer, up 10.5 sen to 50.5 sen with 1,000 shares done. MISC foreign and DiGi rose 10 sen each to RM8.35 and RM24 while Tradewinds Plantations added six sen to RM3.98.