KUALA LUMPUR: The KL Composite Index opened on a firmer footing Thursday heartened, perhaps, by gains in the previous two trading days. However, selling pressure emerged soon after as investors opted instead to lock in trading gains.
There is not much in terms of fresh leads for investors to act on, positively or otherwise. The Dow Jones Industrial Average closed almost flat overnight after the US Federal Reserve left interest rate unchanged. The decision, which ended a string of consecutive rate cuts since September 2007, was widely expected. The Fed also hinted that the next move for interest rates could be up although no time frame was mentioned.
Relevant bellwether indices in key Asian stock markets too traded within narrow ranges on Thursday in the absence of strong leads. Elsewhere, crude oil prices retreated some, to about US$134 (RM442.20) per barrel, after a report showed larger than expected US stockpiles of oil and fuel. There appears some nascent evidence that worldwide consumption is slowing down in the prevailing high price environment.
The KLCI failed to sustain momentum from the previous two trading days, slipping into the red not long after the opening bell. Market breadth also fell into negative territory as the day progressed while volume contracted slightly from the previous day.
On the positive note, the selling pressure appears well absorbed. The benchmark index eventually finished the day five points lower at 1,203.9 points. Leading the top losers was Telekom Malaysia International. The stock lost 30 sen to RM6.70. Other notable losers include BAT, Public Bank-foreign, Asiatic Development, Shell and SP Setia.
At the close, there were five losing stocks for every four gaining ones. Some of the day's most heavily traded counters were Gamuda, AirAsia and TMI. About 399 million shares changed hands. CCB, Genting and Berjaya Land were some of the day's bigger gainers.
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