Friday, March 11, 2011

#Flash* KLCI slides 12 points in early trade, plantations weigh

KUALA LUMPUR: Blue chips fell in early trade on Friday, March 11 as investors worried about the fallout from the Libyan revolt and record high oil prices.

Investors fear unrest could spread from Libya to other oil-producing nations in the Middle East, driving energy costs higher and choking off the global economic recovery, Reuters reported.

At 9.23am, the FBM KLCI was down 12.14 points to 1,504.77. Turnover was 107.29 million shares valued at RM85 million. Losers hammered gainers 284 to 33.

PLANTATION []s were among the major losers on profit taking. RHB Research said'' although current CPO price of RM3,500 a tonne was still above its RM3,100'' price assumption for CY2011, 'we believe valuations of plantation stocks may revert to market averages of 14-16x CY11 (from 15-17x currently)'.

KL Kepong fell the most, down 30 sen to RM20.58, Batu Kawan 16 sen to RM15.22, IOI Corp 14 sen to RM5.57.

Among infrastructure and building materials-related companies, YTL Cement fell 13 sen to RM4.80, TSR Capital and IJM 11 sen each to RM1 and RM6.02.

HL Bank fell 12 sen to RM9.20 in thin trade. The bank had received approval for its proposed issue of up to US$300 million senior unsecured bonds from the Securities Commission.

The proceeds from the issuance of the senior bonds will be used for working capital and general banking purposes.

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