Across Asia, stocks declined for the first time in six days on the back of fears that a recovery from the current slump may take longer than predicted. Major indices tumbled deeper during the afternoon session as the Obama administration warned that some banks will need more government aid and bankruptcy may be the best option for General Motors Corp. and Chrysler LLC. Among others, Japan, Hong Kong and Singapore markets gave away more than 4% of their gains recorded recently.
KLCI lost a hefty 16.09 pts to 869.34. The active losers were Resorts, KNM and Maybank.
TA Securities in its research note said while technical momentum indicators for the KLCI improved further after last week’s strong rally, weaker buying is likely to draw out stale bull sellers this week to check the upside.
"Moreover, completion of the Umno elections, together with the likelihood of a further downward correction for US stocks this week due to fears that American banks will need to report large derivative losses, should grease the downside and increase profit-taking pressure this week," it said.
The Key Indicator (Blue) of the Daily MSO Chart lost 44.79 pts to +12.86 after today’s trade. Total volume decreased to 363 mln shares.
The movements of the Indicator for the past 100 days have established yet another uptrend channel whereby the top trend line becomes a resistance. Market sentiment will be softer after the Indicator has been curbed within the channel. (Click on Chart to view)
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