The FBM KLCI’s year-to-date (YTD) gains were wiped out on Thursday, Feb 10 after it fell more than 2%, the biggest single day loss since November 2008, in tandem with most key regional markets.
1. European markets fell as disappointing corporate earnings weighed on global stock markets on Thursday, pushing major indexes lower,
2. while shifting interest rate expectations lifted the dollar and put Britain's pound on edge, according to Reuters.
3. Investors were also cautious about a Bank of England meeting later in the day, wary in case it makes its first move to tighten policy since the start of the financial crisis, it said.
4. Shanghai Composite Index rebounded after having slipped on Wednesday following an interest rate hike in China.
MIDF Research head Zulkifli Hamzah said:
1. the weakness in the market partly reflected apprehension over China's inflation data due out next week.
2. MIDF Research expects the number to be more than 5%, which was why the decision by the authority there to increase interest rate on Tuesday was a preemptive move with the possibility of more hikes to come.
“The local market was practically dragged by banking and PLANTATION [] sectors. Banking stocks suffered given heightened fears that Bank Negara may raise statutory reserve ratio instead of the OPR, although we believe the risk is overplayed.
“There was profit taking on plantation stocks as CPO price traded at a premium to soyoil lately, which is an unsustainable phenomenon. These concerns are transient in nature. We expect investment sentiment to rebound,” he said. Banking stocks weighed down on the 30-stock index, with profit taking also erasing gains at key blue chips.
Bacaan lanjut @ KLCI skids more than 2pct, wipes out gains for the year
0 comments:
Post a Comment