KUALA LUMPUR: Stock prices on Bursa Malaysia traded broadly lower on Monday, due to a lack of fresh external and domestic leads after the end of the first quarter earnings season.
There was little excitement in the just concluded earnings season, apart from better than expected earnings from steel and plantation companies. However, these two sectors enjoy primarily commodity-based prices.
On the other hand, higher costs pressures were evident in quite a number of industries, particularly the construction and property sectors, which are being hit by rising steel costs.
The KLCI's losses on Monday were also heightened by a last-minute upward spurt last Friday, which could not be sustained.
The benchmark was in fairly deep negative territory throughout the day on Monday. It ended at its intra-day low, down 13.6 points to 1,262.5 points, after a last-minute spurt of selling added another roughly five points of losses. Market breadth was negative with declining stocks beating advancing ones by 2-to-1 ratio.
Trading volume was very low, with just 391 million shares changing hands - the third lowest level of the year. This attests to the unwillingness of investors to participate in the market given the current spate of economic and political issues, locally and abroad. Wall Street's rally from mid-March also appears to be petering out.
With investors still generally sidelined, the stock market may likely continue to drift for a while - despite the appealing valuations of many stocks, particularly the medium-and small cap ones.
The day's most actively traded stocks comprised Gamuda, Muda, IOI Corp, Lion Corp, Lion Industries, MRCB and TM. Gamuda's shares rebounded only very slightly from large losses on Friday due to concerns over its Vietnam projects given that country's economic issues.
Major gainers include BAT, Dutch Lady, Kulim and IOI Properties. Losers include DiGi, MPI, KL Kepong, Public Bank-foreign, Parkson and Berjaya Land.
No comments:
Post a Comment