KUALA LUMPUR (May 15): The FBM KLCI fell sharply on Tuesday and was below the 1,570-level at mid-morning, in line with the losses at most key regional markets.
At 10.05am, the FBM KLCI fell 12.84 points to 1,562.24, weighed by index-linked plantation stocks and select blue chips. The index had earlier fallen to a low of 1,559.01.
Market breadth was negative with loser outpacing gainers by 514 to 51, while 175 counters traded unchanged. Volume was 238.25 million shares valued at RM232.02 million.
Asian shares fell on Tuesday as investors liquidated riskier assets and sought refuge from the political turmoil fuelling fears of Greece's exit from the euro and threatening to ruin any progress made so far to solve the euro zone debt crisis, according to Reuters.
At the regional markets, Japan’s Nikkei 225 fell 1.36% to 8,851.93, Hong Kong’s Hang Seng Index was down 0.33% to 19,669.50, the Shanghai Composite Index lost 0.68% to 2,364.51, South Korea’s Kospi lost 1.53% to 1,884.36, Taiwan’s Taiex fell 0.33% to 7,353.07 and Singapore’s Straits Times Index shed 0.16% to 2,859.46.
European leaders say that unless Greece fulfills its bailout commitments, they will cut off funding, which could oust Athens from the euro, threatening to put in disarray the restructuring efforts by other highly indebted euro zone economies which had agreed to harsh fiscal reforms in return for rescue funds, it said.
BIMB Securities Research in a note Tuesday said the inevitable happened as traders took the opportunity to sell into strength from the recent relief rally in Eurozone and instigated a broad based sell-down in equities.
Meanwhile reflecting the heightened volatility, the 10-year yield of both Spain and Italy had surged to 6.22% and 5.7% respectively, it said.
The fickle Greeks did not help either as they are currently submerged into a political whirlpool, said the research house.
As a result, the Dow Jones Industrial Average was down 125 points to 12,695 with European bourses all suffered significant losses, it said.
“Likewise, Asian markets declined as outlook in Europe is become hazier by the day.
“The selling spilled over to the local bourse as the FBMKLCI dipped 9.24 points to close below the 1,580 level at 1,575.08. Now that the selling had triggered additional uncertainties, we believe investors would continue to be on a sell-mode with the FBMKLCI next support level of 1,567 looking shaky,” it said.
On Bursa Malaysia, Dutch lady was the top loser at mid-morning and fell 70 sen to RM32.10, Ta Ann down 29 sen to RM6.01, KLK 28 sen to RM22.92, Sarawak Oil Palms 21 sen to RM5.99, United Plantations, PPB, Aeon Credit, Orient and Petronas Gas fell 12 sen each to RM24.80, RM 15.95, RM11.10, RM6.40 and RM17.08 respectively, while Jaya Tiasa lost 19 sen to RM8.65.
Hubline was the most actively traded counter with 14 million shares done. The stock was unchanged at 7.5 sen.
Other actives included Naim Indah Corp, JCY, Focus, Ariantec, Compugates, Metronic and Permaju.
Gainers included Toyo Ink, Media Prima, BAT, Wing Tai, Deleum and Ken Holdings.