Petronas-linked stocks, DiGi drag KLCI into the red

KUALA LUMPUR: Mild selling of Petronas-related counters and DiGi pushed the FBM KLCI into the red at the close on Thursday but some nibbling of bank stocks and BAT helped cushion the decline.

Key Asian markets rose as minutes from the Federal Open Market Committee's July 31-Aug 1 meeting showed many members judged that additional stimulus "would likely be warranted fairly soon" unless the pace of the U.S. economic recovery picks up, Bloomberg reported.

At 5pm, the FBM KLCI was down 0.64 of a point or 0.04% to 1,651.61. Turnover was 1.19 billion shares valued at RM1.30bil. There were 305 gainers, 419 losers and 336 stocks unchanged.

The news wire also said in China, a preliminary report indicated manufacturing would contract at a faster pace in August, signaling the country's economy needed more monetary and fiscal stimulus to secure a second-half rebound in growth.

European shares pared early gains to turn flat on Thursday, as an initial boost from US Federal Reserve stimulus comments gave way to persistent concerns over the outlook for the euro zone, highlighted again by fresh weak economic data.

Among the key regional markets, Japan's Nikkei 225 rose 0.51% to 9,178.12; Taiwan's Taiex added 0.11% to 7,505.17 and South Korea's Kospi up 0.38% to 1,942.54 while Singapore's Straits Times Index gained 0.23% to 3,056.37.

Wire reports said Hong Kong shares produced their best showing in almost three weeks on Thursday. The Hang Seng Index closed up 1.23% at 20,132.2 while the China Enterprises Index of the top Chinese listings in Hong Kong ended up 1.4% at 9,836.1.

The Shanghai Composite Index closed up 0.25% at 2,113.07, moving in a 30-point range for a third-straight session. The CSI300 Index of the top Shanghai and Shenzhen listings also rose 0.3%, the reports said.

US light crude oil rose 76 cents to US$98.02 and Brent jumped US$1.28 to US$116.19. Spot gold added US$9 to RM1,663.50.

The ringgit was firmer against the US dollar at 3.0963.

Crude palm oil for third-month futures slipped RM19 to RM3,059. Among the plantations, Chin Tek fell 12 sen to RM9.05, PPB 10 sen to RM14.20 and KL Kepong eight sen lower at RM23.52 but heavyweight IOI rose two sen to RM5.12.

Cement maker Tasek was the top loser, down 34 sen to RM11.34 after the recent run-up in its share price. Timber and plantations based Ta Ann lost 20 sen to RM4.20.

JCY was the fourth most active stock with 67.23 million shares done, sliding 22 sen to RM1.12 as it came under pressure about the uncertain outlook for hard-disk drives as global PC sales fell.

Petronas Dagangan fell 32 sen to RM22.68, Petronas Chemical five sen to RM6.50 and Petronas Gas four sen to RM19.46. Their losses dragged the KLCI down 0.9 of a point.

Among the telcos, DiGi fell three sen to RM34.88 and dragged the KLCI down 0.54 of a point but Telekom added two sen to RM5.12 and Maxis one sen higher at RM6.98.

BAT was the top gainer, climbing 48 sen to RM62.98. Hopes for sustained consumer spending saw department store owner Aeon rising 36 sen to RM10.40 while retailers Padini and Bonia advanced, with Padini up 18 sen to RM2.36 and Bonia 14 sen to RM2.44.

Maybank, which was a major mover among the KLCI component stocks on Wednesday, was unchanged at RM9.19. CIMB and Hong Leong Bank rose four sen each to RM7.85 and RM13.76 while AMMB edged up one sen to RM6.33.

KLCCP rose 13 sen to RM5.48 as hopes mounted about its REITs plan while KrisAssets, which posted a strong set of financial results in the second quarter ended June 30, 2012, rose nine sen to RM9.19.

Guan Chong rebounded 12 sen to RM3.07 after the management gave an assurance it was still keeping its options open while the bonus issue plan was still going ahead.