KLCI falls to 3-month low, Asian stocks down

KUALA LUMPUR: Asian markets skidded in the morning session Thursday, with China’s markets down nearly 3.4% on fears of slowing global growth while the KLCI fell to a near three-month low as investors’ sentiment was rattled by political uncertainties.

Datuk Seri Abdullah Ahmad Badawi would hold an
emergency meeting with Barisan Nasional component parties at 2.30pm after the
Sarawak Progressive Party (SAPP) said it would table a motion of no confidence against the Prime Minister next Monday in Parliament.

At 12.30pm, the KLCI was down 21.11 points or 1.74% to 1,191.48, extending its losses from the 15.2 points decline Wednesday. The FBM Emas lost 148.15 points to 7,941.42 while the FBM Second Board dropped 108.36 points to 5,487.77.

Turnover was 238.25 million shares valued at RM545mil. Declining counters thrashed advancers 557 to 52 while 149 counters were unchanged.

The ringgit was quoted at RM3.26 to the US dollar. Light crude oil was trading at US$136.07 (RM443.59) per barrel while crude palm oil futures fell RM57 to RM3,583 per tonne.

All major Asian markets fell, with Shanghai’s A Share Index falling 3.38% or 104.15 points to 2,981.28, Hong Kong’s Hang Seng Index 1.85% lower at 22,893.11, Japan’s Nikkei 225 lost 2.49% to 14,093.65 and Singapore’s Straits Times Index down 1.62% to 2,990.8.

Analysts said market sentiment was affected by the sharp fall on Asian markets, worries about slowing economic growth amid rising inflationary pressure.

On the home front, the SAPP threat created uncertainties, piling more pressure on the government, which had come under fire for raising fuel prices.

KL Kepong was the top loser, down RM1 to RM17.20, BAT 50 sen to RM42.75, BCHB 40 sen to RM8.10 while Tanjong, TM International and Public Bank lost 30 sen each to RM14.30, RM6.70 and RM10.20 respectively.

Bucking the trend was Nestle, which added 25 sen to RM29.50, Jaya Tiasa eight sen higher to RM3.62 while Hong Leong Bank gained five sen to RM5.95 and MAS four sen to RM3.30.

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