Thursday, April 03, 2008

Lack of oxygen

KLCI ends down 0.9% at 1239.65 in moderate volume. Plantations stocks dragged the index lower on concern CPO prices may see a continued downtrend. Market breadth negative with losers outpacing gainers 390 to 305; index tipped to trade Thursday with downward technical bias to test next support at 1220, after breaking earlier support of 1240. The main drag on the market is plantation stocks; CPO prices peaked at MYR4,486 on March 4 but are now on a downtrend. That translates to lower profits than initially expected.

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