Wednesday, December 7, 2011

KLCI stays in the red at mid-day while Asian markets edge higher

KUALA LUMPUR (Dec 7): The FBM KLCI remained in negative territory at the mid-day break on Wednesday while most key regional markets rose on hopes that European leaders would come up with a positive framework to resolve the eurozone debt crisis at a summit later this week.

Standard & Poor's, which on Monday told 15 euro zone member nations that it may cut their debt ratings, fired a second shot less than 24 hours later, threatening on Tuesday to cut the credit rating of Europe's financial rescue fund, according to Reuters.

The rating action weighed on stocks initially, but US stocks picked up a little late on Tuesday after the Financial Times reported that European leaders would discuss boosting the firepower of the euro zone bailout fund, it said.

The FBM KLCI fell 5.04 points to 1,475.88, weighed by banking and select blue chips.

Gainers edged losers by 319 to 278, while 271 counters traded unchanged. Volume was 1.17 billion shares valued at RM660.94 million.

The ringgit strengthened 0.20% to 3.1288 versus the US dollar; crude palm oil futures for third month delivery gained RM14 per tonne to RM3,103, crude oil rose 18 cents per barrel to US$101.46 while gold added US$1.08 an ounce to US$1,729.28.

At the regional markets, Japan's Nikkei 225 rose 1.25% to 8,682.26, Hong Kong's Hang Seng Index gained 0.93% to 19,117.53, South Korea's Kospi was up 0.78% to 1,917.59, Singapore's Straits Times Index rose 0.73% to 2,769.33, Taiwan's Taiex added 0.71% to 7,005.34 and the Shanghai Composite Index edged up 0.10% to 2,328.14.

Proton was the top loser this morning after the national carmaker's top management yesterday clarified to Bursa Malaysia that it is not aware of any reason for the unusual market activity in its shares.

Proton fell 37 sen to RM3.94 with 4.25 million shares done.

The rally in the share price of Proton started last Thursday on rumours that re-emerged that its largest shareholder Khazanah Nasional Bhd was inviting parties to bid for part or its entire stake in the group. Khazanah holds a 42.74% stake in Proton.

Others losers included MAHB that fell 24 sen to RM5.80, UMW 13 sen to RM6.54, AirAsia 11 sen to RM3.82, Tasek 10 sen to RM7.70 and CBIP nine sen to RM4.54.

Among banking stocks, HLFG fell 12 sen to RM11.48, Hong Leong Bank eight sen to RM10.76, RHB Capital five sen to RM7.21, CIMB six sen to RM7.03, Public Bank two sen to RM12.70 and AMMB one sen to RM5.90.

Pavilion REIT, which made its debut on the Main Market of Bursa Malaysia, was the most actively traded counter at mid-morning with 138.8 million units done. The counter added 10 sen to RM1.

Other actives included Sanichi, LFE Corp, Compugates and Keladi Maju.

Gainers this morning included KLK, Nestle, Orient, Dutch Lady, Chin Teck, Petronas Dagangan Genting.




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