KUALA LUMPUR:'' Profit-taking activities ahead of the weekend on Friday, Dec 10 saw the FBM KLCI succumbing to its steepest single-day loss since Nov 23 while investors braced for more policy tightening by China to stem its two-year high inflation rate.
The FBM KLCI fell sharply by 0.92% or 14.01 points to 1,507.28, weighed by losses at key blue chips including Petronas Dagangan, KLK, MISC, Tenaga and CIMB. Gainers trailed losers by 354 to 428, while 280 counters traded unchanged. Volume was 1.53 billion shares valued at RM2.73 billion.
Sentiment turned cautious in late afternoon trade, impacted by weaker regional markets and expectations of more policy tightening by China and persistent worries about Europe's debt crisis,
Investors' concerns proved to be true when China's central bank upped the amount of money that lenders must keep on reserve for the third time in one month, a move to mop up excess cash in the economy and rein in inflation, according to a Reuters report.The 50 basis point increase, which takes effect on Dec 20, lifts required reserve ratios to 19% for the country's biggest banks, a record high.
The decision to raise banks' required reserves rather than interest rates means that officials have opted for a milder form of monetary tightening for the time being, suggesting that they believe price pressures are still well within their ability to control.
Japan's Nikkei 225 fell 0.72% to 10,211.95, Singapore's Straits Times Index lost 0.77% to 3,185.42, Taiwan's Taiex fell 0.40% to 8,718.83, South Korea's Kospi shed 0.14% to 1,986.14, Hong Kong's Hang Seng Index slipped 0.04% to 23,162.91 while the Shanghai Composite Index rose 1.07% to 2,841.04.
The Shanghai Composite Index jumped on the back of rising Chinese imports and exports.
The Shanghai Composite climbed 1.1% on the day as strong trade data encouraged some investors to take on a little more risk heading into the weekend, but low volumes suggested market players were avoiding building large positions, according to Reuters.
The index ended the week marginally lower, it said.
China's imports and exports were much stronger than expected in November, robust numbers that could clear the way for the central bank to raise interest rates again as soon as this weekend, said Reuters.
On Bursa Malaysia, among the major losers were BAT that fell RM1.26 to RM46.06, PetDag down 40 sen to RM11.50, KLK lost 38 sen to RM21.50, Tasek fell 29 sen to RM7.30, PPB fell 28 sen to RM17.10, RHB Capital down 27 sen to RM8.20, Genting PLANTATION []s lost 20 sen to RM8.46, Nestle down 18 sen to 18 sen to RM43.34 and CIMB lost 14 sen to RM8.76.
MISC tumbled 31 sen to RM8.14 after HwangDBS Vickers Research downgraded the stock to hold and cut its target price to RM8.90.
It cut the FY12F-13F earnings by 13%-17% but expected stable income from LNG and non-shipping units should support earnings.
'Container losses may narrow, but we are concerned about MISC's crude tanker and chemical shipping units, which present downside risks to earnings,' it said.
Meanwhile, Tenaga fell 19 sen to RM8.60 over the delay in a tariff hike at a time of rising coal prices.
Among the gainers, Landmarks surged 27 sen to RM1.64 after CIMB Research said the property company was trading at a hefty discount of more than 70% to its estimated RNAV of RM4.81.
Other gainers included Cepco, Kwantas, Glenealy, Panasonic, DRB-Hicom and MAHB.
Petronas Chemicals was the most actively traded counter with 148.1 million shares done. The stock added four sen to RM5.58. Other actives included Talam, DRB-Hicom shares and warrants, Landmarks, Olympia and Axiata.
The FBM KLCI fell sharply by 0.92% or 14.01 points to 1,507.28, weighed by losses at key blue chips including Petronas Dagangan, KLK, MISC, Tenaga and CIMB. Gainers trailed losers by 354 to 428, while 280 counters traded unchanged. Volume was 1.53 billion shares valued at RM2.73 billion.
Sentiment turned cautious in late afternoon trade, impacted by weaker regional markets and expectations of more policy tightening by China and persistent worries about Europe's debt crisis,
Investors' concerns proved to be true when China's central bank upped the amount of money that lenders must keep on reserve for the third time in one month, a move to mop up excess cash in the economy and rein in inflation, according to a Reuters report.The 50 basis point increase, which takes effect on Dec 20, lifts required reserve ratios to 19% for the country's biggest banks, a record high.
The decision to raise banks' required reserves rather than interest rates means that officials have opted for a milder form of monetary tightening for the time being, suggesting that they believe price pressures are still well within their ability to control.
Japan's Nikkei 225 fell 0.72% to 10,211.95, Singapore's Straits Times Index lost 0.77% to 3,185.42, Taiwan's Taiex fell 0.40% to 8,718.83, South Korea's Kospi shed 0.14% to 1,986.14, Hong Kong's Hang Seng Index slipped 0.04% to 23,162.91 while the Shanghai Composite Index rose 1.07% to 2,841.04.
The Shanghai Composite Index jumped on the back of rising Chinese imports and exports.
The Shanghai Composite climbed 1.1% on the day as strong trade data encouraged some investors to take on a little more risk heading into the weekend, but low volumes suggested market players were avoiding building large positions, according to Reuters.
The index ended the week marginally lower, it said.
China's imports and exports were much stronger than expected in November, robust numbers that could clear the way for the central bank to raise interest rates again as soon as this weekend, said Reuters.
On Bursa Malaysia, among the major losers were BAT that fell RM1.26 to RM46.06, PetDag down 40 sen to RM11.50, KLK lost 38 sen to RM21.50, Tasek fell 29 sen to RM7.30, PPB fell 28 sen to RM17.10, RHB Capital down 27 sen to RM8.20, Genting PLANTATION []s lost 20 sen to RM8.46, Nestle down 18 sen to 18 sen to RM43.34 and CIMB lost 14 sen to RM8.76.
MISC tumbled 31 sen to RM8.14 after HwangDBS Vickers Research downgraded the stock to hold and cut its target price to RM8.90.
It cut the FY12F-13F earnings by 13%-17% but expected stable income from LNG and non-shipping units should support earnings.
'Container losses may narrow, but we are concerned about MISC's crude tanker and chemical shipping units, which present downside risks to earnings,' it said.
Meanwhile, Tenaga fell 19 sen to RM8.60 over the delay in a tariff hike at a time of rising coal prices.
Among the gainers, Landmarks surged 27 sen to RM1.64 after CIMB Research said the property company was trading at a hefty discount of more than 70% to its estimated RNAV of RM4.81.
Other gainers included Cepco, Kwantas, Glenealy, Panasonic, DRB-Hicom and MAHB.
Petronas Chemicals was the most actively traded counter with 148.1 million shares done. The stock added four sen to RM5.58. Other actives included Talam, DRB-Hicom shares and warrants, Landmarks, Olympia and Axiata.
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