KUALA LUMPUR: Blue chips extended their losses for the second day this week, with the 30-stock FBM KLCI in the red at midday on July 7 while the broader market was slightly firmer, with gains in lower lines and penny stocks, despite the lower volume.
At 12.30pm, the FBM KLCI fell 1.65 points to 1,064.18. Turnover shrank to 282.82 million shares valued at RM292.44 million. There were 231 gainers, 156 losers and 196 stocks unchanged.
Japan’s Nikkei 225 rose 0.12% to 9,692.87, Shanghai’s Composite Index rose 0.06% to 3,126.54 while Hong Kong’s Hang Seng Index inched up 0.07% to 18,097.08 and Singapore’s Straits Times Index rose 0.87% to 2,285.89.
Light crude oil rose 41 cents to US$64.46 but crude palm oil futures fell RM35 to RM2,101.
A foreign research house said putting lacklustre earnings growth together with a market price-to-earnings (P/E) of 14.7 times and 13 times 2009F and 2010F earnings, the local stock market’s valuations look challenging next to peer markets and sectors across the region.
“Hence, investor interest in the Malaysian market as it stands is unlikely to be stoked purely by earnings momentum and/or valuations alone. As in many countries across Asia, the biggest potential catalyst is probably political progress or, in Malaysia's case, deregulation of the economy,” it said.
At Bursa Malaysia, Nestle fell the most, down 50 sen to RM31.50 with just 100 shares done. BCHB fell 20 sen to RM9.30 while UMW lost 15 sen to RM5.85. LPI and KL Kepong gave up 10 sen each to RM11.40 and RM11.90.
TRC lost 15 sen to RM1.22, Mamee and Crescendo 13 sen each to RM2.24 and 97sen.
Talam-PB was the most active with 33.17 million units done, adding 0.5 sen to 7.5 sen while the shares rose 0.5 sen also to nine sen.
Public Bank and Public Bank foreign rose 10 sen each to RM9.20. Fututec-WA rose the most, surging 26 sen to 34 sen with 1,500 units done.
Top Glove added 25 sen to RM6.70, Tanjong and Batu Kawan gained 10 sen each to RM13.70 and RM8.65. Warisan and Khind advanced 12 sen each to RM2.30 and 88 sen.