Shares open lower on external jitters

KUALA LUMPUR: Share prices on Bursa Malaysia opened easier in early trade on Monday on lack of buying interest due to the jittery external sentiment, dealers said.

At 9.04 am, the benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 6.7 points to 1,779.05 points, after opening 10.64 points lower at 1,775.11 points.

Decliners led advancers 83 to 62, with 127 counters unchanged, 1,337 untraded and 15 others suspended. Volume amounted to 34.638 million shares worth RM22.595 million. 

HwangDBS Vickers Research, in its note, said the benchmark FBM KLCI could back off slightly from the immediate resistance threshold of 1,785-points level.

Meanwhile, another dealer said the local market would not be affected badly by the external problems as the underlying fundamentals here remain intact, cushioning the impact.

The dealer also said the fundamentals gained support from the Bank Negara Gavernor, who said Malaysia is on track for 4.5-5.0 per cent growth in gross domestic product (GDP).

It was reported that Tan Sri Dr Zeti Akhtar Aziz said the growth would be achieved as domestic demand remains higher and exports recover, while assuming 2014's GDP might exceed 2013's.

Stocks that are expected to come under the spotlight today includ FGV, which plans to buy over the remaining 51 per cent stake in Felda Holdings for RM2.2 billion and Ahmad Zaki Resources, after being awarded a construction project worth RM163 million in Selangor.

On the scoreboard, the Finance Index fell 67.75 points to 16,624.05, the Plantation Index decreased 37.96 points to 8,322.53 and the Industrial Index was down 20.63 points to 3,047.43.

The FBM Emas Index and the FBM100 Index lost 40.11 points each to 12,391.55 and 12,123.3 respectively, while the FBM Ace erased 11.83 points to 5,491.74 and the FBM 70 declined 23.85 points to 14,178.98.

Among actives, Xidelang Holdings added one sen to 28.5 sen while MAS was flat at 35 sen. 

Of heavyweights, Maybank lost five sen to RM9.95, both Axiata Group and CIMB eased three sen to RM6.88 and RM7.46 respectively, and Petronas Chemicals fell six sen to RM7.00. However, Sime Darby was flat at RM9.45