FKLI Related News (Fri, Mar 24)

NEW YORK, May 23 (Reuters) - U.S. stocks dropped on Thursday, with the S&P 500 on pace for its first back-to-back daily drop in a month amid investor concerns the U.S. Federal Reserve's stimulus may be scaled back sooner than hoped and after weak data in China. The S&P 500 had posted its biggest decline in three weeks on Wednesday after minutes from the latest U.S. Federal Reserve meeting showed some officials were open to tapering large-scale asset purchases as early as at the June meeting.

The minutes came in the wake of comments earlier in the session by Fed Chairman Ben Bernanke, who said the Fed could scale back the pace of its bond purchases at one of the "next few meetings" if the economic recovery looked set to maintain forward momentum. Adding to selling pressure, China's flash HSBC Purchasing Managers' Index for May fell to 49.6, slipping under the 50-point level which indicates expansion for the first time since October. That raised concerns the recovery in the world's second-largest economy has stalled and a sharper downturn may be on the horizon. 

Separately, data in Europe showed that while the downturn across euro zone businesses eased slightly in May, the bloc's economy is likely to contract again in the second quarter. In a bright spot, the number of Americans filing new claims for unemployment benefits dropped 23,000 to a seasonally adjusted 340,000, slightly better than expectations for a decline to 345,000, a report showed. But U.S. manufacturing slowed for a second straight month in May, as the Markit Purchasing Managers Index fell to a seven-month low of 51.9 in May from 52.1 the previous month.

The benchmark S&P index has jumped 15 percent since the start of the year, boosted by slowly improving U.S. economic data and stimulus measures by central banks around the globe. The Dow Jones industrial average lost 84.71 points, or 0.55 percent, to 15,222.46. The Standard & Poor's 500 Index dropped 12.64 points, or 0.76 percent, to 1,642.71. The Nasdaq Composite Index fell 20.71 points, or 0.60 percent, to 3,442.59. Selling was broad, with each of the 10 major S&P sectors in negative territory. Decliners on the New York Stock Exchange outpaced advancers by more than five to one, while the ratio on the Nasdaq was three to one.

Housing data showed sales increased to a seasonally adjusted annual rate of 454,000 units in April, above expectations of a 425,000-unit rate, and prices climbed to record high levels in a sign the housing market recovery remains on track. Still, the PHLX housing sector index shed 0.2 percent. Hewlett-Packard Co jumped 11.6 percent to $23.70 as one of only two Dow components in positive territory after the computer maker raised its 2013 earnings outlook after quarterly results beat low expectations.

Stocks on Bursa Malaysia closed lower yesterday, reversing earlier advances as losses in banking and Petronas-related stocks dragged the benchmark FBM KLCI below its previous all-time high closing of 1,788.43 registered on May 14. The FBM KLCI, which hit an intra-day high of 1,795.59, began a downtrend from 3.10pm and eventually closed 3.50 points or 0.20% lower at 1.783.88 points, after opening 1.23 points higher at 1,788.61. Losers led gainers by 618 to 323, with 249 counters unchanged. Turnover declined to 2.877 billion shares worth RM2.972 billion from 2.966 billion shares worth RM3.011 billion on Tuesday.

Taking cue from the rebound on Wall Street overnight, the FKLI spot month contract opened higher on Thursday morning at 1,771.50 and climbed gradually to the intra-day high of 1,777.50 but took a turn in the afternoon session and slipped to the intra-day low of 1,757.50 before closing at 1,764.

The Bursa market is closed today for Wesak Day holiday. Next week’s Support and Resistance for FKLI May contract is located around 1,750 and 1,790 respectively.