At Bursa Malaysia, the FBM KL Composite Index (FBM KLCI) fell 5.61 points or 0.47% to 1,196.46 on Sept 9, weighed down by losses in Genting Bhd.
Investors reacted negatively to its subsidiary Genting Singapore plc’s plan to raise up to S$1.63 billion (RM4 billion) from a proposed rights issue of up to 2.04 billion new shares of 80 cents each or 32.8% below the closing price on Sept 8.
Japan’s Nikkei 225 fell 0.78% to 10,312.14; Hong Kong’s Hang Seng Index 1.04% lower at 20,851.04 and Singapore’s Straits Times Index lost 0.39% to 2,650.48. However, Shanghai’s Composite Index rose 0.54% to 2,946.26.
European bourses were higher in late trade as sentiment perked up after the initial hesitation to pick up equities.
Investors are awaiting the release of the US Federal Reserve Beige Book, a summary of US economic conditions in the 12 Fed districts, and a weekly US mortgage market report for more evidence of a US economic recovery, according to Reuters.
World stocks have recouped more than half of losses by rising 22% since January, fuelled by evidence of a recovering global economy and a weekend Group of 20 (G20) pledge to keep emergency support for their economies in place, the wire report said.
US markets opened lower, with the Dow Jones Industrial Average down 0.14% or 13.22 points to 9,484.12.
Light crude oil rose 69 cents to US$71.79 (RM251.27) at 9pm Malaysia time ahead of the Opec meeting, which is widely expected to keep output targets unchanged.
Gold stood at US$994.40 an ounce, having risen above US$1,000 on Sept 8 as investors sold US dollars to buy risky commodities. Crude palm oil futures fell RM32 to RM2,165.
At Bursa Malaysia, the major decliners included Genting Bhd, which fell the most in a month, down 30 sen to RM6.87. British American Tobacco (Malaysia) Bhd was the top loser, sliding 56 cents to RM45, Tanjong plc 36 sen to RM15.54, YTL Corp Bhd 16 sen to RM7.24 and Sime Darby Bhd 11 sen to RM8.49.
“The regional pullback so soon after the recent days of rally is sure to put a dampener on retail investor sentiment in those markets,” said a RHB Research Institute chartist.
He said the research house’s upside target for the FBM KLCI was 1,250 but added the outlook was now less certain.
“We are still on the positive side. The (Malaysian) index today (on Sept 9) closed exactly at its August high, so the next one or two days is very critical,” he said, adding the FBM KLCI must not fall below the support levels of 1,150 and 1,160, he said.
He said investors however, had to monitor Genting’s share price performance which played a key role in sparking the current upward trend when it crossed the RM6.80 level and closed at RM6.81 per share last Thursday.