KUALA LUMPUR: The Kuala Lumpur Composite Index (KLCI) fell more than 1.5% on June 16 in line with regional markets, weighed by losses in key heavyweights including Malayan Banking Bhd and Tenaga Nasional Bhd.

The KLCI was in negative territory throughout the day, falling as much as 21.4 points before closing 17.05 points, or 1.56%, lower at 1,074.12.

Market breadth was negative with declining stocks beating advancers by a wide four-to-one margin. Losers led gainers by 605 to 148 while 172 counters were unchanged. Volume totalled 1.56 billion shares valued at RM1.85 billion.

Asian markets fell after US equity indices had tumbled between 2.1% and 2.4% in overnight trade as investors cashed out following a poor manufacturing report and a decline in commodity prices.

Japan’s Nikkei 225 lost 2.86% to 9,752.88; Hong Kong’s Hang Seng Index fell 1.8% to 18,165.5, and South Korea’s Kospi was down 0.94% to 1,399.15.

The Shanghai Composite Index shed 0.48% to 2,776.02, Taiwan’s TAIEX Index eased 0.08% to 6,220.81, while Singapore’s Straits Times Index dropped 1.23% to 2,288.16.

European stock markets, which had mostly opened higher on June 16, fluctuated amidst some selling pressure and some were trading in the red within one hour of opening, tracking the steep losses on Wall Street.

Inter-Pacific Research head Anthony Dass said the local stock market was going into a period of consolidation, adding that with plenty of retail play, a slight correction was due.

“Also, the global scenario is not encouraging given the expected credit default of between US$3.5 trillion and US$4 trillion, which shows that the risk factor is still very high.

“There is not much upside to the global equities market as much of the economic data being released is still very weak,” he said.

Dass said second-quarter corporate earnings would also play a vital role in determining stock market performance in the coming months.

Meanwhile, MIDF Research head Zulkifli Hamzah said talks of penny stocks being overplayed and Bursa Malaysia’s warning to investors to be cautious when trading in several stocks indicated that it was time for investors to take a breather.

“Going forward, there is an element of edginess in both local and regional markets, and it will not be surprising if trading is choppy or volatile over the next two weeks.

“Basically, the markets are moving sideways,” he said.

Zulkifli also said investors tended to clear their positions in September due to sentimental reasons ahead of October, which is a notorious month historically for market crashes.

The ringgit closed higher against the US dollar at 3.5200 on June 16 compared with 3.5271 on June 15. During the trading session, the ringgit hit its lowest level for the month at 3.5401 while the intra-day high was 3.5200.

Crude oil rose 78 cents per barrel to US$71.40 as at 6.40pm on June 16, while crude palm oil (CPO) futures for August delivery gained RM5 to RM2,405 per tonne.

For July delivery, CPO futures fell RM6 to RM2,419 per tonne.

Among the major losers, Maybank fell 25 sen to RM5.85, SP Setia Bhd was down 22 sen to RM4.38, PPB Group Bhd and Sime Darby Bhd lost 20 sen each to RM11.30 and RM6.85, respectively, while Tenaga lost 15 sen to RM7.75.

IOI Corporation Bhd, Gamuda Bhd and Astro All Asia Networks plc fell 10 sen each to RM4.60, RM2.68 and RM2.96, respectively; AMMB Holdings Bhd fell 12 sen to RM3.32, MMC Corporation Bhd lost nine sen to RM2.04 while Axiata Group Bhd was down six sen to RM2.33.

Berjaya Sports Toto which rewarded shareholders with dividends of 30 sen cash per share and treasury shares (on a one-for-14 basis or an indicative value of 35 sen per share) was among the top gainers on June 16. The counter rose 29 sen to RM5.25.

Other gainers included Concrete Engineering Products Bhd which jumped 56 sen to RM3.80 and Nestle (Malaysia) Bhd which rose 25 sen to RM31.50. Vastalux Energy Bhd and Emico Holdings Bhd were up 15.5 sen each to 65.6 sen and 50.5 sen respectively, while Farm’s Best Bhd gained 15 sen to 78.5 sen.

Meanwhile, Oriental Holdings Bhd and Tanjong plc added 10 sen each to RM5.35 and RM13.50 respectively.
 
KNM Group Bhd was the most actively traded counter with 105.4 million shares done. The stock fell 2.5 sen to 96 sen.

Other actively traded stocks included Scomi Group Bhd, Mulpha International Bhd, UEM Land Holdings Bhd, Tebrau Teguh Bhd, Jaks Resources Bhd, Malaysian Resources Corporation Bhd and Kinsteel Bhd.