Monday, May 23, 2011

Euro debt woes batter markets, KLCI dn 12 pts

KUALA LUMPUR:'' European and Asian markets skidded on Monday, May 23 on mounting debt worries in Europe, with key Asian indices falling up to 2.44%.

The FBM KLCI closed down 12.05 points or 0.78% to 1,528.98. Turnover was 870.62 million shares valued at RM1.30 billion. Losses widened towards the close with declining stocks hammering advancers nearly four to one, with 630 losers to 175 gainers.

Among Southeast Asian markets, Jakarta's Composite Index fell 2.44% to 3,778.45, Singapore's Straits Times Index 1.91% to 3,108.11 and Thailand's Stock Exchange Index 1.62% lower at 1,055.56.

Japan's Nikkei 225 fell 1.52% to 9,460.63, Hong Kong's Hang Seng Index 2.11% lower at 22,711.02, South Korea's Kospi 2.64% to 2,055.71.

Among European markets, the FTSE 100 fekk 1,58% to 5,854.60, CAC 40 1,8% lower at 3,919.18 and DAX 1.76% to 7,139.14.

Investors reacted to the various events with a burst of risk aversion, shifting funds into U.S. government debt, gold and the dollar. The US dollar strengthened against major currencies and against the ringgit, it rose 0.0498 to 3.0618.

Light crude oilfell US$2.70 to US$97.40 while crude palm oil third-month futures fell RM26 to RM3,364.

Reuters reported debt worries hammered European markets on Monday, knocking both the euro and regional shares down as investors digested a block of bad news about the euro zone crisis.

Following Fitch Ratings cut of Greece's debt ratings by three notches on Friday, pushing the country's debt deeper into junk status, rival Standard & Poor's cut its outlook for Italy to "negative" from "stable" on Saturday.

At Bursa, Tradewinds recent rally came to a halt, skidding 66 sen to RM9.82 while BAT lost 50 sen to RM45.50, Nestle 48 sen to RM47.50 and MISC 34 sen to RM6.69.

Among PLANTATION []s, KL Kepong fell 34 sen to RM21.66 and Batu Kawan 22 sen to RM16.20. HLFG lost 30 sen to RM11.26 and HL Bank 24 sen to RM11.80.

Hap Seng Consolidated extended its losing streak, down 22 sen to RM5.10.

On May 12, the company announced it had fixed the issue price for the placement shares at RM5.25, or 9.9% below the five-day volume-weighted average market price up to May 11 of RM5.83. This triggered a sell on the shares since then.

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