KUALA LUMPUR: Asian markets were mired in the red on Wednesday, March 2, with Japan's Nikkei 225 falling more than 2%, as a confluence of events kept investors firmly on the sidelines, awaiting fresh leads.
According to CIMB Research, Asian markets traded mostly lower by mid-day hampered by the rise in oil prices as volatility continue to plague the markets.
'Sentiments were further dented after the US Fed reported that higher commodity and energy prices might derail the budding recovery in the US. The MSCI Asia-Pacific index fell -0.9% to 137.82 with all 10 major industry groups declining,' it said
The FBM KLCI managed to pare down some its losses at the mid-day break, but the broader market remained weak.
The 30-stock index fell 0.38% or 5.75 points to 1,496.49, weighed by losses including at banking stocks and key blue chips. Losers thumped gainers by 672 to 77, while 220 counters traded unchanged. Volume was 621.04 million shares valued at RM662.69 million.
The ringgit weakened 0.18% to 3.0415 versus the US dollar; crude palm oil futures for the third month delivery rose RM21 per tonne to RM3,549, crude oil added 38 cents per barrel to US$100.01 while gold fell US$3.28 per troy ounce to US$1,430.
At the regional markets, Japan's Nikkei 225 fell 2.13% to 10,525.45, Hong Kong's Hang Seng lost 1.74% to 22,988.68, Singapore's Straits Times Index fell 0.90% to 3,040.04, the Shanghai Composite Index lost 0.74% to 2,897.23, Taiwan's Taiex shed 0.67% to 8,669.33 while South Koreas' Kospi was down 0.38% to 1,931.97.
Also, Standard & Poor's said it may still cut the sovereign ratings of Greece and Portugal, depending on the details of Europe's crisis fund that euro zone policymakers are discussing.
Brent oil extended gains after settling at a near 2 1/2-year high as tension in Libya ratcheted up, spurring fears other producers in the Middle East and North Africa could face similar revolts while crude and gasoline stocks unexpectedly fell in the world's top oil importer, the US, according to Reuters.
Libya could descend into civil war unless Muammar Gaddafi quits, the United States said on Tuesday, as pressure intensified on the longtime leader after news of Western military preparations, it said.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said he expects the index to remain in a minor rebound mode in the short term and very bearish in the medium term.
'As a result, very short-term trading is the key to the markets. We suggest that clients liquidate on rallies and remain more in cash.
'Due to the DJIA's plunge last night, we will see the FBM KLCI in a volatile mode today,' he said.
Among the major losers, Genting fell 14 sen to RM10.12, Sime Darby and Petronas Chemicals four sen each to RM9 and RM6.29, YTL Corp nine sen to RM6.98, MISC five sen to RM7.60 and Axiata two sen to RM4.97.
Banking stocks fell, with HLFG down 11 sen to RM8.65, RHB Capital 10 sen to RM7.90, CIMB, Public Bank and AMMB six sen each to RM8, RM13.04 and RM6.27 respectively while Maybank shed two sen to RM8.65.
Other decliners this morning included Ekovest, Chin Teck, Tradewinds, Faber, Mudajaya, C.I Holdings and Kawan Food.
Among the gainers, Lafarge Malayan Cement rose 23 sen to RM7.58, F&N 22 sen to RM15.96, Petronas Dagangan 20 sen to RM13.86, Nilai 10 to RM1, Tenaga and S P Setia six sen each to RM6.29 and RM6.03, while Amway added five sen to RM8.49.
The actives this morning included HWGB, Talam, Tanco, Ramunia, Karambunai, SAAG and Olympia.
According to CIMB Research, Asian markets traded mostly lower by mid-day hampered by the rise in oil prices as volatility continue to plague the markets.
'Sentiments were further dented after the US Fed reported that higher commodity and energy prices might derail the budding recovery in the US. The MSCI Asia-Pacific index fell -0.9% to 137.82 with all 10 major industry groups declining,' it said
The FBM KLCI managed to pare down some its losses at the mid-day break, but the broader market remained weak.
The 30-stock index fell 0.38% or 5.75 points to 1,496.49, weighed by losses including at banking stocks and key blue chips. Losers thumped gainers by 672 to 77, while 220 counters traded unchanged. Volume was 621.04 million shares valued at RM662.69 million.
The ringgit weakened 0.18% to 3.0415 versus the US dollar; crude palm oil futures for the third month delivery rose RM21 per tonne to RM3,549, crude oil added 38 cents per barrel to US$100.01 while gold fell US$3.28 per troy ounce to US$1,430.
At the regional markets, Japan's Nikkei 225 fell 2.13% to 10,525.45, Hong Kong's Hang Seng lost 1.74% to 22,988.68, Singapore's Straits Times Index fell 0.90% to 3,040.04, the Shanghai Composite Index lost 0.74% to 2,897.23, Taiwan's Taiex shed 0.67% to 8,669.33 while South Koreas' Kospi was down 0.38% to 1,931.97.
Also, Standard & Poor's said it may still cut the sovereign ratings of Greece and Portugal, depending on the details of Europe's crisis fund that euro zone policymakers are discussing.
Brent oil extended gains after settling at a near 2 1/2-year high as tension in Libya ratcheted up, spurring fears other producers in the Middle East and North Africa could face similar revolts while crude and gasoline stocks unexpectedly fell in the world's top oil importer, the US, according to Reuters.
Libya could descend into civil war unless Muammar Gaddafi quits, the United States said on Tuesday, as pressure intensified on the longtime leader after news of Western military preparations, it said.
Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said he expects the index to remain in a minor rebound mode in the short term and very bearish in the medium term.
'As a result, very short-term trading is the key to the markets. We suggest that clients liquidate on rallies and remain more in cash.
'Due to the DJIA's plunge last night, we will see the FBM KLCI in a volatile mode today,' he said.
Among the major losers, Genting fell 14 sen to RM10.12, Sime Darby and Petronas Chemicals four sen each to RM9 and RM6.29, YTL Corp nine sen to RM6.98, MISC five sen to RM7.60 and Axiata two sen to RM4.97.
Banking stocks fell, with HLFG down 11 sen to RM8.65, RHB Capital 10 sen to RM7.90, CIMB, Public Bank and AMMB six sen each to RM8, RM13.04 and RM6.27 respectively while Maybank shed two sen to RM8.65.
Other decliners this morning included Ekovest, Chin Teck, Tradewinds, Faber, Mudajaya, C.I Holdings and Kawan Food.
Among the gainers, Lafarge Malayan Cement rose 23 sen to RM7.58, F&N 22 sen to RM15.96, Petronas Dagangan 20 sen to RM13.86, Nilai 10 to RM1, Tenaga and S P Setia six sen each to RM6.29 and RM6.03, while Amway added five sen to RM8.49.
The actives this morning included HWGB, Talam, Tanco, Ramunia, Karambunai, SAAG and Olympia.
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