Friday, July 30, 2010

Regional markets dip after Japanese manufacturing slows down

KUALA LUMPUR: Regional markets, including Bursa Malaysia sagged on Friday, July 30 after Japanese manufacturing activity expanded in July at its slowest pace in four months, as overseas demand slackens following a rapid recovery earlier this year.

The Nomura/JMMA Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 52.8 in July from 53.9 in June, the lowest level since 52.7 in March, according to Reuters.

The index remained above the 50 threshold that separates contraction from expansion for the 13th consecutive month.

The output component of the PMI index declined to 53.8 from 55.9 in June, which is the slowest pace of growth in output in 13 months as some companies tried to sell down their inventories due to uncertainty about the strength of the global economy, said Reuters.

At the regional markets, Japan's Nikkei 225 fell 1.77% to 9,524.13, the Shanghai Composite Index lost 1.16% to 2,617.48, Hong Kong's Hang Seng Index down 0.52% to 20,983.93, the South Korean Kospi 0.75% to 1,757.60, Taiwan's Taiex 0.42% to 7,766.04 and Singapore's Straits Times Index down 0.48% to 2,983.30.

On Bursa Malaysia, the FBM KLCI dipped 1.03 points to 1,357.38 at the mid-day break. Losers beat gainers by 377 to 232, while 268 counters traded unchanged. Volume was 435.90 million shares valued at RM519.17 million.

Crude palm oil for the third month delivery rose RM10 per tonne to RM2,524; crude oil fell 22 US cents per barrel to US$78.14 (RM249.27) while gold added 43 cents to US$1,168.68 per ounce.

F&N was the top loser this morning and fell 20 sen to RM14.50; Bursa lost 16 sen to RM7.02, Suiwah 13 sen to RM1.46, while Perstima, Cycle & Carriage, and PPB Group fell 12 sen each to RM4.98, RM5.85 and RM17.28, respectively.

Tenaga, Telekom and IJM Corp fell three sen each to RM8.57, RM3.36 and RM5.04, respectively, while MAS, RHB Capital, YTL Corp and KLK lost two sen each to RM2.13, RM6.50, RM7.55 and RM16.88, respectively.

Among the major gainers, Tasek jumped 69 sen to RM7.88, Petronas Gas up 40 sen to RM9.95, Nestle 18 sen to RM38.98 while Hong Leong Industries and PLUS added 12 sen each to RM5.02 and RM3.87, respectively.

Sinotop was the most actively traded counter with 32.8 million shares done. The stock fell 6.5 sen to 24.5 sen.

Other actives included Timecom, SAAG, JCY International, Scomi, E&O and Malton.


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