KUALA LUMPUR: Some selling of big cap stocks including DiGi, Maybank and MISC dragged the KL Composite Index into the red at the midday break on July 2 as investors assessed the news flow from Invest Malaysia.

At 12.30pm, the KL Composite Index had slipped 1.97 points to 1,077.43. Turnover was 391 million shares done valued at RM455.64 million. There were 193 gainers, 269 losers and 196 counters unchanged.

Light crude oil fell 17 cents to US$69.14 while crude palm oil futures fell RM62 to RM2,196.

Key Asian markets were mostly lower. Singapore’s Straits Times Index shed 0.6% to 2,337.75 and the Nikkei 225 lost 0.55% to 9,885.50 but Hong Kong’s Hang Seng Index added 1% to 18,555.64 and Shanghai’s Composite Index rose 0.9% to 3,035.21.

DiGi and Maybank fell 20 sen each to RM22 and RM5.65.

AmResearch had the previous day downgraded DiGi from a Buy to Hold with lower air value of RM22.80 per share versus RM24.50 previously, at parity to its revised discounted cashflow (DCF) valuation.

“Our earnings estimate has been lowered by 5% for FY09F and 7% in FY10F to take into account lower subscriber base growth of 1%-2%; lower blended average revenue per user per month (ARPU/month) of 3%-5%,” it added on July 1. 

Maybank fell on concerns about its non-performing loans.

Among the top 10 very active stocks, UEM Land fell two sen to RM1.46, KNM 1.5 sen to 80.5 sen and Sino Hua-an 0.5 sen lower to 51.5 sen while Talam shed one sen to 10.5 sen.

UMW, MISC, Tanjong and Top Glove lost 10 sen each to RM5.95, RM8.50, RM13.70 and RM6.60 respectively.

However, BCHB chalked up a 25 sen gain to RM9.35 after announcing its proposed “bad banks” for NPLs. LPI added rose 16 sen to RM11.50 while Public Bank foreign, Sime Darby and Kulim advanced 10 sen each to RM9.15, RM7.15 and RM6.35 respectively.