KUALA LUMPUR (July 25): The FBM KLCI reversed its earlier gains and fell into negative territory at mid-morning in line with the losses at key regional markets.
Even the firm debut by IHH Healthcare did little to lift sentiment at the local bourse, as overriding external factors kept investors spooked over the market outlook.
At 10am, the FBM KLCI fell 1.43 points to 1,631.14.
There were 246 losers and 111 gainers, while 206 counters traded unchanged. Volume was 342.65 million shares valued at RM736.09 million.
Asian shares fell and the euro was stuck near multi-year lows against major currencies on Wednesday as soaring borrowing costs deepened worries Spain might need a bailout, while Greece's finances appeared to fall short of terms conditional to its aid, according to Reuters.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.6 percent after managing a small gain on Tuesday. The index tumbled 2.4 percent on Monday for its worst one-day performance in about two months, it said.
At the regional markets, Japan’s Nikkei 225 fell 1.32% to 8,376.21, Hong Kong’ Hang Seng Index lost 0.75% to 18,760.60, the Shanghai Composite Index was down 0.22% to 2,141.92, Taiwan’s Taiex shed 0.17% to 6,996.62, South Korea’s Kospi lost 1.26% to 1,771.26 and Singapore’s Straits Times Index fell 0.41% to 2,986.15.
BIMB Securities Research in a note Wednesday said prevailing European financial quandary coupled with the anaemic US economic recovery and lower than expected earnings by global giants like Apple and UPS had further dragged investor’s already fragile sentiments deeper into the abyss.
The Dow Jones Industrial Average having lost 222 points the last 2 days, suffered another 104.14 point decline to 12,617, it said.
The research houe said that in Europe, Moody’s revision of its outlook on Germany, the Netherlands and Luxembourg to negative had placed additional uncertainty on the region prompting another round of selling across the board.
Regionally, it was a mixed day on July 24 for Asian markets following some bargain hunting activities and prospective encouraging figures from China’s manufacturing activities.
“Locally, the FBM KLCI lost 3.6 points to 1,632.57 as consolidation of the local bourse continues.
“Today, we may see some buying returning to welcome the listing of IHH of which we have a target price of RM3.30 for the healthcare giant. We believe buying interests may also focus on TH Plantation following some land acquisition,” it said.
Among the decliners at mid-morning, Lafarge Malayan Cement fell 19 sen to RM7.81. Carlsberg down 14 sen toRM12.28, UMS nine sen to RM2.03, MISC and KPJ down eight sen each to RM4.56 and RM6.02, GAB six sen to RM14.02, while MSC, Ekovest and UMW lost five sen each to RM3.80, RM2.50 and RM9.84 respectively.
IHH Healthcare was the most actively traded counter with 197.58 million shares done. The stock climbed 27 sen to RM3.07.
Other actives included Cybertowers, Century Software, Harvest Court, Astral Supreme, YGL and RedTone.
The gainers at mid-morning included Nestle, Aeon Credit, Bonia, Tasek, Country View, Kwantas and TH Plantations.