KUALA LUMPUR: Asian markets got off to sharply weaker opening on the week beginning Monday, Sept 5 following a string of worrying data in the US that pointed to a growing fear of recession.
Compounding fears of a recession in the United States, Europe faces a string of political and legal tests this week that could hurt efforts to resolve its sovereign debt crisis and increase pressure on governments to try more radical solutions, according to Reuters.
Meanwhile, World Bank President Robert Zoellick warned on Saturday the world economy was stepping into a "new danger zone" as growth slows and investor confidence weakens.
The FBM KLCI slipped 4.48 points to 1,469.61 at 10am, weighed by losses including at banking stocks and Genting.
Market breadth was negative with losers beating gainers by 269 to 99, while 161 counters traded unchanged. Volume was 107.30 million shares valued at RM183.82 million.
At the regional markets, Japan's Nikkei 225 fell 1.71% to 8,797.89, Hong Kong's Hang Seng Index lost 2.03% to 19,802.70, the Shanghai Composite Index down 1.15% to 2,499.16, Taiwan's Taiex lost 2.48% to 7,564.31, South Korea's Kospi fell 2.69% to 1,817.59 and Singapore's Straits Times Index was down 2.42% to 2,774.22.
BIMB Securities Research said a selldown on US equities ensued last Friday following a worse than expected job data that showed zero growth as opposed to consensus expectation of 75,000 additions.
As a result, the Dow Jones Industrial Average declined 253 points, it said in a note Sept 5.
'Meanwhile, it seems like the sub-prime issue continues to haunt the US financial entities with the Feds now filing law suits against 17 financial institutions over misrepresentation of the quality on risky mortgage investments,' it said.
The research house said that as for Asia, regional bourses posted losses all round exacerbated by weaknesses over in Europe.
'Bursa Malaysia became the regional 'hero' with an impressive 30 point gain closing in on the 1,500 mark.
'Nonetheless, with Wall Street rearing its ugly head again, we expect buying on the local bourse to be subdued and the FBM KLCI is seen to be flat,' it said.
On Bursa Malaysia, among the decliners at mid-morning were LPI Capital that fell 38 sen to RM12.62, Panasonic 26 sen to RM22.82, Genting 14 sen to RM9.51, KFCH eight sen to RM3.83, Sunchirin seven sen to RM1.45 while Tasek fell six sen to RM7.50.
Among banking stocks, CIMB lost 13 sen to RM7.27, RHB Capital nine sen to RM8.22 and Hong Leong Bank eight sen to RM12.22.
Gainers included BAT, Turiya, Utusan, Telekom, UMW, Petronas Gas and Plenitude.
Actives meanwhile included E&O, Axiata, Iris Corp, CIMB, Denko, DVM, Takaso and Petronas Chemicals.
''
Compounding fears of a recession in the United States, Europe faces a string of political and legal tests this week that could hurt efforts to resolve its sovereign debt crisis and increase pressure on governments to try more radical solutions, according to Reuters.
Meanwhile, World Bank President Robert Zoellick warned on Saturday the world economy was stepping into a "new danger zone" as growth slows and investor confidence weakens.
The FBM KLCI slipped 4.48 points to 1,469.61 at 10am, weighed by losses including at banking stocks and Genting.
Market breadth was negative with losers beating gainers by 269 to 99, while 161 counters traded unchanged. Volume was 107.30 million shares valued at RM183.82 million.
At the regional markets, Japan's Nikkei 225 fell 1.71% to 8,797.89, Hong Kong's Hang Seng Index lost 2.03% to 19,802.70, the Shanghai Composite Index down 1.15% to 2,499.16, Taiwan's Taiex lost 2.48% to 7,564.31, South Korea's Kospi fell 2.69% to 1,817.59 and Singapore's Straits Times Index was down 2.42% to 2,774.22.
BIMB Securities Research said a selldown on US equities ensued last Friday following a worse than expected job data that showed zero growth as opposed to consensus expectation of 75,000 additions.
As a result, the Dow Jones Industrial Average declined 253 points, it said in a note Sept 5.
'Meanwhile, it seems like the sub-prime issue continues to haunt the US financial entities with the Feds now filing law suits against 17 financial institutions over misrepresentation of the quality on risky mortgage investments,' it said.
The research house said that as for Asia, regional bourses posted losses all round exacerbated by weaknesses over in Europe.
'Bursa Malaysia became the regional 'hero' with an impressive 30 point gain closing in on the 1,500 mark.
'Nonetheless, with Wall Street rearing its ugly head again, we expect buying on the local bourse to be subdued and the FBM KLCI is seen to be flat,' it said.
On Bursa Malaysia, among the decliners at mid-morning were LPI Capital that fell 38 sen to RM12.62, Panasonic 26 sen to RM22.82, Genting 14 sen to RM9.51, KFCH eight sen to RM3.83, Sunchirin seven sen to RM1.45 while Tasek fell six sen to RM7.50.
Among banking stocks, CIMB lost 13 sen to RM7.27, RHB Capital nine sen to RM8.22 and Hong Leong Bank eight sen to RM12.22.
Gainers included BAT, Turiya, Utusan, Telekom, UMW, Petronas Gas and Plenitude.
Actives meanwhile included E&O, Axiata, Iris Corp, CIMB, Denko, DVM, Takaso and Petronas Chemicals.
''
No comments:
Post a Comment