Friday, October 21, 2011

Genting, Tenaga weigh on KLCI

KUALA LUMPUR: Losses at blue chips including at Genting and Tenaga weighed down the FBM KLCI at the mid-day break on Friday, Oct 21 as most key regional markets slipped into the red, ahead of a meeting by European policymakers this weekend to resolve the eurozone debt crisis.

Tenaga fell after Maybank IB Research lowered its target price for the stock to RM5.90 ''(from RM6.60) and said the company's upcoming 4QFY11 results scheduled on 28 Oct would be very weak due to insufficient gas supply that necessitates using oil and distillates as a fuel source to generate power (a significantly more expensive and money losing proposition).

The FBM KLCI shed 1.08 points to 1,440.10 at the mid-day break. Losers edged gainers by 262 to 254, while 264 counters traded unchanged. Volume was 626.79 million shares valued at RM446.14 million.

The ringgit weakened 0.87% to 3.1565 versus the US dollar; crude palm oil futures for the third month delivery gained RM9 per tonne to RM2,875, crude oil rose 22 cents per barrel to US$86.29 while gold was up US$5.70 an ounce to US$1,626.50.

Asian investors remained jittery after European leaders said they did not expect Sunday's meeting to give an all-cure solution to the euro zone's debt problems, with regional leaders still sharply divided over how to strengthen a euro zone rescue fund, according to Reuters.

France and Germany said in a joint statement on Thursday that the leaders will discuss in detail a comprehensive solution to the euro zone crisis at the summit on Sunday but no decisions will be adopted before a second meeting to be held by Wednesday at the latest, it said.

At the regional markets, Japan's Nikkei 225 fell 0.20% to 8,665.16, Hong Kong's Hang Seng Index shed 0.02% to 17,978.77, the Shanghai Composite Index lost 0.58% to 2,317.96 and Taiwan's Taiex was down 0.26% to 7,225.80.

Meanwhile, South Korea's Kospi pared down its gains and was up 0.70% to 1,817.69 and Singapore's Straits Times Index was up 0.41% to 2,705.08.

On Bursa Malaysia, Genting PLANTATION []s fell 20 sen to RM7.38, Petronas Dagangan down 12 sen to RM16.16, Genting lost 11 sen to RM9.89, Nestle and PPB 10 sen each to RM49.20 and RM16.70, Malayan Flour Mills nine sen to RM7.36, Ta Ann, Southern Steel and MISC eight sen each to RM4.66, RM1.97 and RM6.62 respectively, while Tenaga fell seven sen to RM5.48.

Among the gainers this morning, BAT added 88 sen to RM44.48, Tasek 33 sen to RM7.88, Faber 26 sen to RM1.86, Dutch Lady 20 sen to RM19.20, Cepco 18 sen to RM1.91, CI Holdings 12 sen to RM4.90, while United Plantations and MSM added 10 sen each to RM17.30 and RM5.04.

The actives included TMS, IRCB, GPRO, MAA, JCY and AirAsia.

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