Regional markets dip, Lion Group in focus

KUALA LUMPUR: The Lion Group of companies was in focus in early trade on Thursday, June 23 on news that the group is seeking to consolidate its steel business soon to pave way for the entry of a foreign strategic partner to help grow its steel operations.

The broader market, however, was weaker in line with regional bourses, tracking losses on Wall Street after the Federal Reserve cut its economic growth forecasts for the US for this year and next, raising concern about global growth and slowing demand.

The FBM KLCI fell 2.73 points to 1,564.62 at 10am

Losers led gainers by 197 to 133, while 193 counters traded unchanged. Volume was 179.15 million shares valued at RM152.12 million.

At the regional markets, Japan’s Nikkei 225 was down 0.37% to 9,594.00, Hong Kong’s Hang Seng Index fell 0.91% to 21,661.31, the Shanghai Composite Index lost 0.65% to 2,632.09, Taiwan’s Taiex declined 0.41% to 8,585.84, while South Korea’s Kospi and the Singapore Straits Times Index shed 0.40% each to 2,055.65 and 3,030.73.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients June 23 said that due to the US markets’ softer tone last night, there could be some initial selling activities in the local bourse today.

He said the market could decline marginally, with some blue chip buying activities cushioning the drop later in the day.

“As a result, we expect the FBM KLCI to remain volatile on an intra-day basis today.

“There may be potential to test its resistance of 1,569 and 1,576 soon though,” he said.

Lion Group of companies’ shares was actively trade after The Edge Financial Daily reported on June 23 that the Lion group has started meeting steel players from various countries, including China’s Baosteel Group, which have shown interest in its steel operations.

Lin Corp shed half a sen to 29.5 sen with 29.6 million shares trade, Lion Diversified added 1.5 sen to 45.5 sen with 17.4 million shares done, Lion Industries up seven sen to RM1.94 with 6.1 million shares done while Lion Forest Industries added six sen to RM1.64.

Among the decliners, RHB Capital fell 40 sen to RM9.20, Ibraco 24 sen to 98 sen F&N 10 sen to RM19.30, VS Industry nine sen to RM1.60, Aeon Credit, BLD PLANTATION []s and BToto down sen each to RM5.05, RM6.82 and RM4.39 respectively, while KPJ and CMSB lost six sen each to RM4.57 and RM2.30.

Gainers included United Plantations, HLFG, UMS, TSR Capital, UM Land, MSC and Hua Yang.