KUALA LUMPUR: Investor interest in equities was lackluster Tuesday. Market volume was, once again, relatively low while share prices were mostly trapped within very narrow ranges. There was little catalyst to encourage investors back into the fray.
The KL Composite Index traded almost flattish for the better part of the day. Conditions turned a bit more negative after the break, likely affected by losses in key regional markets. Even so, the benchmark index held up fairly well to end the day just about five points lower at 1,257.6 points.
Market breadth was negative throughout the day. Given prevailing clouded outlook few will be motivated to put fresh money into the market. At the close, the number of losing counters outpaced advancing ones by a ratio of roughly eight to five.
Reflecting investors' ambivalent attitude, market volume continued to on the thin side. Gamuda was the day's most actively traded stock. Its shares gained 13 sen to RM2.63 on bargain hunting after plunging late last week. Nevertheless, investors are likely to be more cautious now given the bleaker outlook on its investments in Vietnam. Total market volume came up to nearly 465 million shares, an improvement on the previous day's level.
AirAsia shares were also among the actively traded. The stock has been weighed down by rising oil prices. Crude oil futures traded on the New York Mercantile Exchange is currently hovering around US$127 (RM412.75) per barrel, well above last year's average prices.
Some of the bigger losers for the day include Hong Leong Bank, Parkson, KNM, DiGi, IJM and IOI Properties. At the other end, Lafarge Malayan Cement, BAT, Gopeng, YTL Cement and Petronas Gas were among the top gainers. Cement stocks are reacting to indications that the government is ready to do away with existing price caps, similar to the recent move liberating the steel sector.
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