KUALA LUMPUR, Jan 28 (Bernama) -- Bursa Malaysia snapped its five-day winning streak to close lower on Wednesday, as investors took profit following a cumulative gain of 4.25 per cent over the past five sessions, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.76 points or 0.83 per cent to 1,756.49 from Tuesday’s close of 1,771.25. The market bellwether opened 1.46 points lower at 1,769.79, marking the day’s high, and hit a low of 1,750.05 during the mid-afternoon session. Market breadth was negative with losers trouncing gainers 876 to 384, while 525 counters were unchanged, 964 untraded and 94 suspended. Turnover improved to 3.65 billion units worth RM4.41 billion from Tuesday's 3.58 billion units worth RM4.46 billion.
Just yesterday, we were talking about a good day for FBM KLCI, where the index rose 3.61 points to close at 1842.17.
Well, some analyst will look at the drop for today to 1829.91 (a drop of 12 pts) is a technical correction after consecutive gains for the past 3 days.
But with the anticipation that Organisation of Petroleum Exporting Countries (OPEC) member nations would not cut output to support prices, it's best that investors be careful in their trade in FBM KLCI. There are some who expect the rebound in oil price in December because of the winter in the northern hemisphere.
The decline today was mainly due to the blue chips counter like Tenaga, Telekom etc.
Regionally, the markets were mixed with Japan's Nikkei and and Hong Kong's Hang Seng decline while South Korea's Rospi rose for about 0.06%.
Here are some of the concerns that investors should take note of:
1) How the oil prices will move in the coming months with the OPEC not cutting output to support prices??
2) More stimulus in China and Europe? And how this will affect the market moving forward.
Market dropped again today. How far do you think it will drop to?
ReplyDeleteHi Jayce, my take on this is that the drop will probably continue for a while for O&G but with some positive sentiments in the United States and more stimulus plan from countries like China, Japan, Europe, things should improve. Of course, it's easy to fall into the trap of going in too early as there's a feeling that FBM KLCI is trading at a slighly higher price than our regional peers. But as mentioned in my most recent post on Profitability Ratios, I believe one should focus at the fundamentals of the stock, the business model of the company. Anyway good luck!
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