FBM KLCI in consolidation mode

Published: Monday February 21, 2011 MYT 11:22:00 AM
Updated: Monday February 21, 2011 MYT 5:17:00 PM
FBM KLCI in consolidation mode
by TEE LIN SAY

KUALA LUMPUR: The FBM KLCI continued with its consolidation, amid escalating unrest in the Middle East and China, and an early surge in crude oil prices.

In Malaysia, news of the MRT continued to hog the headlines. Last week, during the display of the MRT blue line at the KL City Council, the main crowd-puller was the video display and narration of the planned alignment from Sungai Buloh to Kajang.

Tenders for the Blue Line may be called as early as in April 11, which would provide ample time for the 2 to 3 month evaluation period before contracts are awarded. The government aims to start work on the project in July 11, which is achievable though only for peripheral earthworks and site preparation.

In China, Chinese security officials questioned and detained scores of activists at the weekend and warned others against staging protests after an online call was made for demonstrations in 13 cities.

The swift crackdown underlined the anxiety of authorities in the wake of the Egypt uprising and protests across the Middle East.

After a massive selldown two weeks ago, foreign funds returned to emerging Asian markets last week. MIDF Research said that while China may still be in favour, foreign funds were also back snapping stocks in Asian Emerging markets.

There was heavy buying by foreign funds of equity in the Thailand, Indonesian and to some extent, India and Philippine markets last week.

Foreign funds, bought on net basis, US$476mil equity in Thailand and US$274mil in Indonesia, a sizeable amount by historical standard

At 5pm, the FBM KLCI was up 8.29 points to 1,525.85. There were a total of 311 gainers and 792 losers with 267 stocks unchanged.

Tokyo's Nikkei 225 was up 0.14% to 10,857.53 and Hong Kong's Hang Seng Index was down 0.47% to 23,485.42.

Shanghai's A index was up 1.12% to 2,932.25 while Taiwan's Taiex Index was down 0.05% to 8,839.22.

Seoul's Kospi Index was down 0.39% to 2,005.3, with Singapore's Straits Times Index was down 0.66% to 3,066.41.

Nymex crude oil was up US$1.78 cents to US$104.30 per barrel.

Spot gold was up US$10.30 to US$1,398.90 per ounce.

The ringgit was quoted at 3.0355 to the US dollar.