KUALA LUMPUR (July 23): The FBM KLCI edged lower in early trade on Monday in line with the retreat at most key regional markets.
At 9am the, the FBM KLCI shed 0.16 of a point to 1,642.84.
There were 45 gainers and 37 losers, while 70 counters traded unchanged. Volume was 9.71 million shares valued at RM3.49 million.
Shares fell and the euro stayed vulnerable after hitting fresh lows early on Monday in Asia, as concerns grew about Spain's ability to stave off a sovereign bailout, according to Reuters.
U.S. and European stocks tumbled on Friday after indebted region Valencia sought financial aid from Madrid. Spain's main stock index plunged 5.8 percent for its biggest one-day drop in two years, while Spain's 10-year government bond yield scaled a euro-era high at 7.32 percent, it said.
CIMB Research has maintained its Neutral weighting on Malaysia but we raised its end-2012 KLCI target from 1,610 points to 1,650 points, after adjusting up target P/E to 13.3 times from 13 times previously (based on an unchanged 5% discount to 3-year moving average P/E).
“We continue to prefer defensive sectors including brewery, gaming, power and REITs,” it said.
Among the early decliners on Bursa Malaysia were Ta Ann, MHC, UMW