KLCI dips as plantation, banks weigh



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KUALA LUMPUR (Nov 18): The FBM KLCI opened lower on Tuesday, weighed by losses including at index-linked plantation and banking stocks, and heaveyweight Tenaga Nasional Bhd.

At 9am, the FBM KLLCI opened 0.04 points lower at 1,806.44.

The top losers in early trade included Genting Plantations Bhd, PPB Group Bhd, IJM Corporation Bhd, Lafarge Malaysia Bhd, Ta Ann Holdings Bhd, Tune Insurance Holdings Bhd, Hong Leong Financial Group, Public Bank Bhd, MISC Bhd and Tenaga Nasional Bhd.

Regionally, Japanese shares led a tentative recovery in Asian shares on Tuesday, drawing some support from two U.S. blockbuster acquisitions and anticipation of more European monetary stimulus, according to Reuters.

A day after shock data showing Japan slipping into recession had rattled financial markets, Japan's Nikkei rose 1.4 percent in early trade, erasing about a half of its 3.0 percent fall the previous day, it said.

M & A Securities research head Rosnani Rasul in a market preview Tuesday said Wall Street ended near its flat line on Monday as mixed of bad and good news put investors in a state of limbo.

She said the S&P 500 and DJIA added a mere 1.50 (0.07%) and 13.01 (0.07%) points to end at 2,041.32 and 17,647.75 respectively.

Rosnani said despite the lukewarm performance, both indexes managed to reach a new high again, its multiple smashing records in the fourth quarter.

She added that it was reported yesterday that Japan’s preliminary 3Q14 GDP came in at a negative 0.5%, back-to-back consecutive decline, making Japan officially in recession.

Rosnani said that had sent the Yen to lose momentum against Dollar which has elevated the investors.

She said that in another news, Mario Draghi, in his statement in front of the parliament committee said that the ECB would not hesitate to unleash a sizeable stimulus packages in order to offset downside risk to growth.

“The market has been betting on this and the decision to finally hammer one jacked up their sentiment.

“Above all, we think that the local market may not get excited with the overnight development in Wall Street and would rather focus on the current results season.

“The absence of solid catalyst may push the investors to the sideline yet again,” it said.