Stocks in Bursa Malaysia fell 4.55 points to close at 1134.70 points Tuesday as investors cashed in profits after five consecutive days of gains. The benchmark FBM KLCI surged as high as 1144.24 points in the morning session before profit taking set in and reversed trend of the market. However, losses were fairly limited as the positive market sentiment remained mostly intact on optimism that the global economy would be back on track. In fact, the FBM KLCI had racked up almost 76 points on the back of five consecutive days of gains. The benchmark index hit a new high for the year on Monday.
On Tuesday, it opened slightly higher but then traded in and out of positive territory with some investors opting to lock in recent gains. Market breadth suggested broad-based profit taking activities. The selling pressure, however, was well absorbed.
Overall, the performance of the local market in the next few days would depend on the US market as quarterly earnings season kicks into high gear, with the focus on American Express Co, Apple Inc, Boeing Co, Caterpillar Inc, DuPont Co, Microsoft Corp, and 3M Co. Meanwhile, genuine profit taking at higher levels cannot be ruled out after the recent rally.
The Finance Index eased 0.04% to 9256.80 points, the Plantation Index added 0.56% to 5517.23 points and the Properties Index lost 0.73% to 731.76 points. The market traded within a range of 12.18 points between an intra-day high of 1144.24 and a low of 1132.06 during the session. Actively traded stocks include KNM, AXIATA, UEMLAND, TEBRAU, JAKS, IOICORP, AMDB, PBBANK-CH, KINSTEL and ASTRO.
Investor confidence in stocks appear likely to stay bullish on the back of better than expected corporate earnings results and more evidence of a global economic recovery. US stocks had stringed together six straight days of gains. Wall Street’s strong performance is fuelling the current rally in Asian stock markets.
Trading volume declined to 912.65 mil shares worth RM1.49 bil as compared to Monday's 1.01 bil shares worth RM1.59 bil. Lagging Movers were PUBLIC BANK (-20 sen to RM10.10), AXIATA (-9 sen to RM2.87), COMMERZ (-15 sen to RM9.95), GENTING (-10 sen to RM5.90) and GENTING MALAYSIA (-7 sen to RM2.77). Leading Movers were MAYBANK (+20 sen to RM6.40), PPB (+40 sen to RM13.00), IOI CORP (+4 sen to RM4.84), KLK (+20 sen to RM12.30), and YTL (+5 sen to RM7.00). Market breadth was negative with 427 losers as compared to 209 gainers.