Monday, September 19, 2011

KLCI falls 1.24% as foreign funds continue to exit

KUALA LUMPUR: The FBM KLCI fell 1.24% on Monday, Sept 19, in line with the downtrend at most key regional markets as jittery investor sentiment due to the seemingly worsening euro zone debt crisis drove investors away from the riskier equity markets.

After a rare four-day rally in world stocks last week, the cancellation of a visit by Greek Prime Minister George Papandreou to the United States to chair an emergency cabinet meeting at home, and a regional election defeat for German Chancellor Angela Merkel, added to a sense of worsening crisis, according to Reuters.

The FBM KLCI fell 17.81 points to close at 1,413.12, dragged by losses including Sime Darby and other key blue chips. Week-on-week, the index has fallen 33.14 points.

Losers beat gainers by 496 to 218, while 233 counters traded unchanged. Volume was 724.37 million shares valued at RM1.35 billion.

MIDF Research head Zulkifli Hamzah said there was a possibility that foreign funds were switching back to western markets as prices there had fallen quite a bit in recent weeks.

He said that as at last week, it was for the second week in a row that there was an aggregate net outflow of foreign investment from Asian equity amounting to more than US$2 billion.

'This was based on data from the 7 proxy markets (Korea, Taiwan, Thai, Malaysia, Indonesia, Philippines and India) that we track. With a net outflow of US$2.1 billion, foreigners have been exiting Asian equity in 9 out of the last 10 weeks.

'Stocks with high incidence of foreign shareholding are vulnerable these few days, including Sime Darby which is not an exception,' he said.

Sime Darby fell 30 sen to RM7.70 with 25.23 million shares done. The stock saw some RM1.8 billion erased from its market capitalisation today.

The other losers included DiGi that fell RM1.46 to RM30.50, Petronas Gas 96 sen to RM13.72, BAT 44 sen to RM43.76, Panasonic 40 sen to RM19.90, Hong Leong Bank 34 sen to RM10.56, IJM Corp 29 sen to RM5.30, while LPI Capital, MMHE and PPB lost 18 sen each to RM12.70, RM6.13 and RM16.72 respectively.

Among the gainers, Bintulu Port and Perduren addd 18 sen each to RM6.80 and 88 sen, AutoV 13 sen to RM1.90, F&N, Aeon Credit and KLK up 12 sen each to RM16.52, RM4.65 and RM21.30 respectively, while EIG and Lysaght were up nine sen each to 50 sen and RM1.60.

The actives included Takaso, E&O, UEM Land, Systech, Timecom, CIMB, Petronas Chemicals and Asia EP.

Meanwhile at the regional markets, Hong Kong's Hang Seng Index fell 2.76% to 18,917.95, the Shanghai Composite Index lost 1.79% to 2,437.79, Taiwan's Taiex down 1.27% to 7,480.88, Singapore's Straits Times Index fell 1.14% to 2,757.23 and South Korea's Kospi shed 1.04% to 1,820.94.

Japan's Nikkei 225 was closed for a national holiday.


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