KLCI dips 0.58% as select blue chips weigh

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KUALA LUMPUR (Aug 20): The FBM KLCI dipped 0.58% at the midday break today, weighed by select blue chips in line with the slide at regional markets.

At 12.30pm, the FBM KLCI fell 9.09 points to 1,573.35.

Losers led gainers by 460 to 238, while 268 counters traded unchanged. Volume was 984.95 million shares valued at RM813.44 million.

The top losers included MSM Malaysia Holdings Bhd, Panasonic Malaysia Manufacturing Bhd, Carlsberg Brewery (M) Holdings Bhd, Sime Darby Bhd, Hong Leong Financial Group Bhd, Petronas Dagangan Bhd, UMW Holdings Bhd and Petronas Gas Bhd.

The actives included AirAsia Bhd, Frontken Corporation Bhd, AirAsia X Bhd, APFT Bhd, Unisem (M) Bhd, Tiger Synergy Bhd and PDZ Holdings Bhd.

The gainers included Pharmaniaga Holdings Bhd, Batu Kawan Bhd, YSP Southeast Holdings Bhd, Top Glove Corporation Bhd, Berjaya Auto Bhd, Karex Bhd, Jobstreet Corporation Bhd and Signature International Bhd.

Concerns about slowing growth in China sent Asian shares to two-year lows and pressured oil prices on Thursday while minutes from the US Federal Reserve's July meeting dented expectations for a rate hike in mid-September, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.9% with all markets in the region except New Zealand posting declines, it said.

AffinHwang Capital Research said while valuations of the FBM KLCI had turned more appealing after the 140-point pullback in August alone, and that there were sufficient headwinds for the market to remain in a downtrend.

“Near term, we are of the view that the KLCI could potentially see further downside bias as foreign shareholding remains relatively high.

“Maintain 'neutral' with a lower year-end target of 1,600 (based on -1SD mean PE or 14.7x 2016E EPS), from 1,740. Risks include direction of capital flows and corporate earnings growth,” it said.