Thursday 28 Mar 2024
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KUALA LUMPUR: The fall at regional markets on April 8 put the brakes on the FBM KLCI’s 12-day winning streak, causing it to slump 0.90% or 12.16 points to 1,332.93, in what analysts said was a mild correction.

Finance stocks, led by CIMB Group Holdings Bhd and Malayan Banking Bhd, weighed on the local market and together, slashed six points off the benchmark index.

Most Asian markets fell, taking cue from the almost 0.7% overnight fall on Wall Street on Wednesday, as investors took profit on concern of weak data from the US and decline in machinery orders in Japan.

Added to that was the statement by the US Federal Reserve chairman Ben Bernanke that the US economy still faced significant headwinds, including a housing sector that had yet to recover fully and an unfavourable employment market.

Analysts said investor sentiment was significantly influenced by the regional reaction to developments in the US and Europe, particularly on concern about Greece’s financial stability after it was reported that the country would revise its 2009 deficit, the largest in the European Union, to at least 12.9% of GDP.

European markets were also not spared the contagion effect and opened broadly lower on April 8.

On the Asian markets, Japan’s Nikkei 225 fell 1.1% to 11,168.2, Hong Kong’s Hang Seng Index was down 0.28% to 21,867.04, the Taiwan Taiex Index lost 0.79% to 8,057.6, the Shanghai Composite Index declined 0.94% to 3,118.71 and the Singapore Straits Times Index fell 0.83% to 2,963.19.

The South Korean Kospi, however, advanced 0.42% to 1,733.78.

On Bursa Malaysia Securities Bhd, losers led gainers by 476 to 239, while 292 counters were traded unchanged. Trading volume was 1.28 billion shares valued at RM1.74 billion.

Crude palm oil futures for the third month delivery fell RM35 per tonne to RM2,495, while crude oil futures lost 43 cents per barrel to US$85.45 (RM274.29) at 6.30pm on April 8.

Inter-Pacific Research said the correction at the local stock market was expected, as investors would start taking profit after a long rally.

“But the index is still hovering at near two-year high levels, so it is not a major concern for now. The negative news flow from US, Japan and Europe will most certainly affect investor sentiment, at least in the short run,” it said.

Among the finance stocks on April 8, CIMB fell 44 sen to RM14.20, Maybank was down six sen to RM4.79 while Hong Leong Financial Group Bhd lost 12 sen to RM8.68.

Other major losers included Panasonic Manufacturing Malaysia Bhd that fell 60 sen to RM15.98, DFZ Capital Bhd down 37 sen to RM4.13 and Top Glove Corporation Bhd down 34 sen to RM13.58 while PPB Group Bhd and Supermax Corporation Bhd fell 26 sen each to RM18.04 and RM7.19, respectively.

The top gainer on April 8 was British American Tobacco (M) Bhd which added 32 sen to RM45.68, followed by P.I.E Industrial Bhd which gained 21 sen to RM4.46.

Ajinomoto (Malaysia) Bhd rose 16 sen to RM4.16, Scomi Group Bhd was up 9.5 sen to 54 sen, APM Automotive Holdings Bhd and QSR Brands Bhd up nine sen each to RM4.20 and RM3.49, respectively, while Aturmaju Resources Bhd added eight sen to 68 sen.

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