European, Asian markets fall as stimulus hopes fade again

KUALA LUMPUR: All key European and Asian markets fell on Friday as investors' hopes of central banks' stimulus packages to shore up their economies faded.

Asian key indices fell about 1% but the spillover effect on Malaysia and Singapore were not that severe.

Reuters said investors generally sold riskier assets across financial markets on Friday, remaining to a certain degree in limbo until they learn how much of a punch central banks will give to the stumbling global economy.

At 5pm, the FBM KLCI was down 3.39 points or 0.21% to 1,648.22 - the lowest since Aug 13. Turnover was 1.28 billion shares valued at RM1.19bil. There were 322 gainers, 434 losers and 331 stocks unchanged.

Among the key regional markets, Japan's Nikkei 225 fell 1.17% to 9,070.76; Hong Kong's Hang Seng Index lost 1.25% to 19,880.03; Shanghai's Composite Index declined 0.99% to 2,092.10; Taiwan's Taiex 0.37% lower at 7,477.53 and South Korea's Kospi 1.17% down to 1,919.81. Singapore's Straits Times Index shed 0.19% to 3,050.49.

US light crude oil fell 12 cents to US$96.15 and Brent three cents lower at US$114.98 while spot gold eased US$1.54 to US$1,668.99.

The ringgit was quoted at 3.0990 against the US dollar.

Crude palm oil for third-month futures rose RM14 to RM3.075.

At Bursa Malaysia, plantations fell, with heavyweight IOI Corp down seven sen to RM5.05 and dragged the KLCI down 1.05 points. PPB Group lost four sen to RM14.16 while Far East fell 18 sen to RM7.50, Genting Plantations 11 sen to RM9.26, Batu Kawan and United Plantations 10 sen each to RM19 and RM26.90.

Aeon lost 36 sen to RM10.04 to emerge as the top loser while Petronas Gas gave up 16 sen to RM19.30 and Lafarge 15 sen to RM8.51. Hong Leong Finance lost 10 sen to RM12.34, AirAsia fell nine sen to RM3.51, Petronas Dagangan eight sen to RM22.60.

IGB closed eight sen lower at RM2.47, but off the earlier low of RM2.41 on investors' disappointment over the delay in the launch of the prospectus for its real estate investment trusts (REITS) which would see it raising RM837.5mil from the initial public offering.

PacificMas whose share price surged 23.5 sen to 37.5 sen on Friday after the 95 sen cash capital repayment went ex, maintained it would apply to wind-up the company.

Hard-disk drive maker JCY rose one sen to RM1.13, recovering from the sell-off after its executive director Tan Shih Leng was quoted saying by Bloomberg that everything was running as normal.

JCY's share price had fallen to a low of RM1.03 on Friday on worries about the slump in PC sales.

Among the KLCI stocks, BAT added 82 sen to RM623.80, Maxis four sen to Rm7.02 and CIMB three sen to RM7.88.

Nestle gained 80 sen to RM63, GAB 30 sen to RM15.50 and KLCCP 17 sen to RM5.65.