Monday, July 25, 2011

Asian markets retreat, gold soars

KUALA LUMPUR: Key Asian markets were mostly in the red on Monday, July 25 as hopes of a deal to avert a US default began to fade, and the Shanghai Composite fell 2% as China rail equipment shares plunged in the aftermath of the massive train crash there.

Republicans and Democrats in the US Congress were each trying to put together their own plan after talks with President Barack Obama broke down over the weekend, heightening fears of a catastrophic US debt default that could roil the global economy, according to Reuters.

Meanwhile, gold surged to a record high and oil fell on Monday as investors flocked to safer assets with time quickly running out for US lawmakers to reach a debt deal, raising the prospects for a disastrous default, it said.

The FBM KLCI fell 3.76 points to 1,561.30 at 12.30pm, as market breadth turned negative with losers beating gainers by 429 to 157, while 243 counters traded unchanged. Volume was 429.94 million shares valued at RM523.99 million.

The ringgit was flat at 2.9758 versus the US dollar; crude palm oil futures fell RM49 per tonne to RM3,091 and crude oil down US$1.01 per barrel to US$98.86.

Meanwhile, gold surged US$13.33 per troy ounce to US$1,614.60.

At the regional markets, the Shanghai Composite Index fell 2.10% to 2,712.60, Japan's Nikkei 225 and Hong Kong's Hang Seng Index lost 0.79% each to 10,052.41 and 22,268.28, Singapore's Straits Times Index down 0.93% to 3,153.31, Taiwan's Taiex down 0.86% to 8,689.80 and South Korea's Kospi shed 0.82% to 2,153.32.

On Bursa Malaysia, Genting fell 20 sen to RM10.52, RHB Capital 16 sen to RM9.03, Sindora 14 sen to RM2.46, Malayan Flour Mills 13 sen to RM7.90, while Kawan Food, CI Holdings and HLFG fell 12 sen each to RM1.12, RM4.49 and RM13.26 respectively.

Meanwhile, LATEXX PARTNERS BHD [] shares and warrants extended their losses at the mid-day break after YTY Industry Holdings Sdn Bhd withdrew its offer to merge its four glove-making subsidiaries unit with Latexx.

The warrants fell 19 sen to RM1.52 while the shares lost 17 sen to RM2.01.

Newly-listed Hibiscus Petroleum Bhd's warrants and shares were actively traded this morning. The warrants rose one sen to 13.5 sen with 43.1million units done while the shares fell 9.5 sen to 53 sen.

Other actives included Ingenuity Solutions, Palette, Bumi Armada, Jotech and Lion Corp.

Gainers included Coastal warrants, KLK, 3A, Maxtral, Nestle and Esso.

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