KUALA LUMPUR: Investor sentiment on the Bursa Malaysia stayed on the negative footing Wednesday. We suspect the local bourse will continue to drift given prevailing uncertainties in financial markets globally.
Wall Street's big overnight loss gave investors more reasons to take money off the table. On the foremost of investors' minds was the threat of rising inflationary pressure on global economies. Crude oil futures on the New York Mercantile Exchange touched fresh intra-day high of US$129.60 (RM421.20) per barrel. There are no signs that prices will be able to sustain a retreat. In fact, most expect oil prices to stage further gains in the near future.
Key Asian markets also opened broadly lower although mild bargain hunting pared losses later in the day. Relevant bellwether indices in the region eventually closed on a mixed note.
The KL Composite Index started off in negative territory. The benchmark index managed to recoup lost ground to move briefly into the black as the day progressed, but slipped back into the red in the afternoon session. These gyrations are a reflection of the ambivalence that has persisted in recent days, and such sentiment appears likely to stay for now.
Market volume stood at about 531 million shares. The most heavily traded counter was the renounceable rights to YTL Power warrants. Wednesday was the first day the rights were traded. Shareholders of YTL Power are being offered the warrants on a one for three basis at a price of 10 sen per warrant. The rights will be traded for a week.
Market breadth remained in the red throughout the day. At the close, losing stocks outnumbered gaining ones by roughly three to two. The KLCI closed six points lower at 1,281.2 points. Among the bigger losers were IOI Corp and Bursa Malaysia. Shares for Green Packet fell for the second consecutive day to RM2.41. At the other end, Kulim was the day's top gainer.
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