KUALA LUMPUR: Shares on the Bursa Malaysia snapped a three-day winning streak to close lower on (08-05-2008) Thursday. Sentiment was weak right from the word get go. We suspect the local bourse will remain within a narrow trading range given prevailing uncertainties.
The KL Composite Index traded in the red for almost the entire day. Clearly, investor confidence is still very fragile and most are cautious on where the market is next headed. As such, gains will likely be short-lived. Investors are more likely to lock in short term profits rather than hold on to their stocks, at least for the moment.
Sentiment was also affected by Wall Street's more than 200 points drop overnight after crude oil prices rose to yet another record high – and fanning inflationary pressures around the world. Crude oil futures on the New York Mercantile Exchange is now hovering just under US$124 per barrel. Many key Asian stock markets too finished the day with losses.
Selling pressure intensified in the afternoon session although the KLCI did manage to claw back some losses near the close. Some of the biggest losers were MPI, Panasonic Malaysia, Petronas Gas, KL Kepong, Public Bank, DiGi and IOI Properties.
The benchmark index finished nearly seven points lower at 1,280.4. Market breadth was, unsurprisingly, negative throughout the day. At the close, there were roughly seven losing counters for every five gaining ones.
Market volume contracted some from the previous two trading days. About 486 million shares changed hands Thursday. Telekom Malaysia was the most actively traded stock for the day.
Shares for JT International rose 30 sen to RM4.50 after the tobacco manufacturer announced a second interim dividend of 15 sen per share plus special tax-exempt dividend of 28 sen per share. The stock will trade ex-entitlement 22 May. Elsewhere, Southern Steel gained for the third straight day. The stock closed almost 5% higher at RM2.95.
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