KLCI has drop so much, is it time to buy? Or wait?
By JOSEPH CHIN (18.09.2008 10.00am)
KUALA LUMPUR: Blue chips fell in early trade on Thursday, with the KL Composite Index falling below the psychological 1,000-level at the start, dragged down by external financial turmoil and political worries.
At 9.04am, the KLCI was down 14.38 points to 988.61. Turnover was 10.64 million shares valued at RM13.42mil. There were 11 gainers, 90 losers and 31 counters unchanged.
Across Asia, key indices fell, with South Korea’s Kospi down 34.53 points or 2.42% to 1,390.73, Japan’s Nikkei 225 skidded 2.81% to 11,420.02 and Singapore’s Straits Times Index slipped 3.21% to 2,341.6.
In the US, stocks fell on Wednesday, with the Dow Jones Industrial Average closing at its lowest level since November 2005, as the government's rescue of American International Group Inc. failed to stop financial sector hemorrhaging and as credit conditions tightened.
The Dow Jones Industrial Average shed 449.44 points, or 4.1%, to end at 10,609.58.
At Bursa Malaysia, HwangDBS Vickers Research said the KLCI which hit an intra-day low of 1,000.41 on Wednesday before closing at 1,002.99 faced more downside risk ahead, possibly testing and breaking below the support line of 990 next.
“One source of selling pressures will come from Wall Street, with its major equity indices sinking further by 4.1% to 4.9% last night amid concerns that the widening financial crisis is not over yet.
“Providing another spin to our local bourse is the shifting political ground. Following the pullout of a Sabah-based component party yesterday – which has then lowered the ruling coalition’s majority control of the Parliament to 54 seats now," it said.
KL Kepong fell the most, down 45 sen to RM9.05, Tanjong gave up 40 sen to RM12.90, DiGi and Tenaga 30 sen each to RM23.40 and RM6.20 while VADS lost 25 sen to RM6.30.
Other major decliners were Asiatic, down 22 sen to RM4.28, BCHB and Maybank fell 20 sen each to RM7.20 and RM6.70 while TMI gave up 15 sen to RM5.85. IOI Corp fell 12 sen to RM3.84 in active trade.
By JOSEPH CHIN (18.09.2008 10.00am)
KUALA LUMPUR: Blue chips fell in early trade on Thursday, with the KL Composite Index falling below the psychological 1,000-level at the start, dragged down by external financial turmoil and political worries.
At 9.04am, the KLCI was down 14.38 points to 988.61. Turnover was 10.64 million shares valued at RM13.42mil. There were 11 gainers, 90 losers and 31 counters unchanged.
Across Asia, key indices fell, with South Korea’s Kospi down 34.53 points or 2.42% to 1,390.73, Japan’s Nikkei 225 skidded 2.81% to 11,420.02 and Singapore’s Straits Times Index slipped 3.21% to 2,341.6.
In the US, stocks fell on Wednesday, with the Dow Jones Industrial Average closing at its lowest level since November 2005, as the government's rescue of American International Group Inc. failed to stop financial sector hemorrhaging and as credit conditions tightened.
The Dow Jones Industrial Average shed 449.44 points, or 4.1%, to end at 10,609.58.
At Bursa Malaysia, HwangDBS Vickers Research said the KLCI which hit an intra-day low of 1,000.41 on Wednesday before closing at 1,002.99 faced more downside risk ahead, possibly testing and breaking below the support line of 990 next.
“One source of selling pressures will come from Wall Street, with its major equity indices sinking further by 4.1% to 4.9% last night amid concerns that the widening financial crisis is not over yet.
“Providing another spin to our local bourse is the shifting political ground. Following the pullout of a Sabah-based component party yesterday – which has then lowered the ruling coalition’s majority control of the Parliament to 54 seats now," it said.
KL Kepong fell the most, down 45 sen to RM9.05, Tanjong gave up 40 sen to RM12.90, DiGi and Tenaga 30 sen each to RM23.40 and RM6.20 while VADS lost 25 sen to RM6.30.
Other major decliners were Asiatic, down 22 sen to RM4.28, BCHB and Maybank fell 20 sen each to RM7.20 and RM6.70 while TMI gave up 15 sen to RM5.85. IOI Corp fell 12 sen to RM3.84 in active trade.
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