Tuesday, November 30, 2010

FBM KLCI slips as key Asian marts slump

KUALA LUMPUR: The FBM KLCI fell in the morning session on Tuesday, Nov 30, in line with the negative investor sentiment across key regional markets as China's stock markets fell more than 3% with a shortfall of cash in the domestic money market creating a liquidity squeeze in the stock market.

At the midday break, the FBM KLCI lost 0.32% or 4.74 points to 1,491.21, weighed by losses including at BAT, Petronas Gas, DiGi and Petronas Chemicals. Banking stocks fell on expectations of weaker market conditions. Losers beat gainers by 426 to 195, while 262 counters traded unchanged. Volume was 511.43 million shares valued at RM746.23 million.

However, sentiment at Bursa Malaysia could be shored up by the government's plans to boost the economy and its push into the oil, gas and energy industry.

Prime Minister Datuk Seri Najib Razak announced nine developments, entry point projects under Economic Transformation Plan (ETP), of which three would focus on oil, gas and energy industry,

At the regional markets, the Shanghai Composite Index tumbled 3.05% to 2,778.87, plunging to levels not seen since early September. The index has fallen 7% this month after rising 12% in October.

China's benchmark short-term money market rate, the weighted average seven-day government bond repurchase rate, jumped over 57 basis points early on Tuesday to its highest level in more than two years, with traders reporting an acute liquidity squeeze, according to Reuters.

Japan's Nikkei 225 fell 1.58% to 9,965.83, Hong Kong's Hang Seng Index lost 1.23% to 22,880.17, Singapore's Straits Times Index down 0.47% to 3,143.32, South Korea's Kospi down 0.10% to 1,893.62 while Taiwan's Taiex added 0.39% to 8,400.05.

The fall at the Japanese and Korean markets came about as factories in both countries cut output last month.

The ringgit weakened 0.30% to 3.1605 versus the US dollar; crude palm oil futures for the third month delivery fell RM13 per tonne to RM3,368; gold dropped US$2.50 an ounce to US$1,363.82 while crude oil slipped 56 cents per barrel to US$85.17.

The major loser was QSR after the board and also its parent, Kulim, rejectrf offers to take over QSR at RM6.70 per share. QSR fell 37 sen to RM5.89 and QSR-WB 25 sen to RM2.89, KFC fell five sen to RM3.89 and Kulim down 10 sen to RM11.98.

Among the major losers, BAT fell 58 sen to RM44.40, Hong Leong Bank down 13 sen to RM9.17, Petronas Gas and DiGi lost 12 sen each to RM11.14 and RM24.54 and Petronas Chemicals down five sen to RM5.35.

Genting, CIMB and Public Bank down four sen each to RM10.18, RM8.44 and RM12.80 respectively while Maybank lost three sen to RM8.65.

Gainers included Tasek, MTD, KLK, Dutch Lady, MAHB and EON Capital.

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