KUALA LUMPUR (July 23): The FBM KLCI fell at mid-morning on Monday, in line with the weaker sentiment at Asian markets.
At 10am, the FBM KLCI fell 3.12 points to 1,639.88.
Losers led gainers by 246 to 143, while 209 counters traded unchanged. Volume was 219.38 million shares valued at RM106.47 million.
Shares fell and the euro stayed vulnerable after hitting fresh lows early on Monday in Asia, as concerns grew about Spain's ability to stave off a sovereign bailout, according to Reuters.
U.S. and European stocks tumbled on Friday after indebted region Valencia sought financial aid from Madrid. Spain's main stock index plunged 5.8 percent for its biggest one-day drop in two years, while Spain's 10-year government bond yield scaled a euro-era high at 7.32 percent, it said.
At the regional markets, Japan’s Nikkei 225 fell 1.19% to 8,567.03, Hong Kong’s Hang Seng Index lost 2.66% to 19,110.00, the Shanghai Composite Index fell 1.4% to 2,138.24, Taiwan’s Taiex lost 2.07% to 7,016.66, South Korea’s Kospi fell 1.92% to 1,788.00 and Singapore’s Straits Times Index was down 0.75% to 2,992.80.
BIMB Securities Research in a note Monday said investors’ confidence was further sapped following the slow progress of European policy makers in addressing the crisis stricken region.
Comments from the IMF citing the sluggish progress did not help the situation as financially strained countries are now faced with high borrowing costs, it said.
The research house said Spain’s and Italy’s 10-year yield have now jumped to 7.23% and 6.15% respectively which would heightened the default risks.
As such, European markets were sold down across the board ahead of the weekend with the Dow Jones Industrial Average succumbing to selling pressure as well was down 121 points to 12,822.
“Asian markets were also broadly lower attributed to the weaker opening in Europe. In tandem with the regional performance, the FBM KLCI declined 1.6 points to 1,643.
“Though we expect the correction to continue in the interim, we believe the revival of foreign funds back into the region in the near term to prop regional markets higher. Today, we expect the FBM KLCI to trend between the 1,640-45 band,” it said.
Among the losers on Bursa Malaysia, Fima Corp lost 16 sen to RM6.34, MAHB fell 10 sen to RM5.50, MHC was down nine sen to RM1.36, KLCCP was down eight sen to RM4.82, while Top Glove, Ta Ann and MISC fell six sen each to RM5.30, RM4.90 and RM4.69 respectively.
DBE Gunney was the most actively traded counter with 33.29 million shares done. The stock was unchanged at 8 sen.
Other actives included Harvest Court, Ariantec, Naim Indah Corp, Metronic, MK Land, VCybertowers and AT Systemization.
Gainers included Nestle, KLK, Allianz, MCN, CMMT, CMSB, Harrisons and Southern Steel.