FBM KLCI closes lower, banks weigh

KUALA LUMPUR: The FBM KLCI closed lower on Thursday, June 23, as RHB Capital fell the most since October 2008 following reports that CIMB and Maybank were dropping their respective takeover bids for the bank.

The FBM KLCI fell 4.16 points to close at 1,563.19, led by losses at banking stocks.

Losers beat gainers by 393 to 330, while 308 counters traded unchanged. Volume was 875.69 million shares valued at RM1.44 billion.

At the regional markets,

RHB Capital fell 5.94% or 57 sen to RM9.03 with 12.4 million shares traded after the Singapore Straits Times reported that CIMB and Maybank were dropping their separate takeover bids for RHB Capital.

The Straits Times, citing executives close to the situation said the decision by the two banks came after one of RHB's shareholders, Abu Dhabi Commercial Bank , signed the sale agreement of its 25 percent stake in RHB with Abu Dhabi-based investment fund Aabar Investments for 10.80 ringgit ($3.56) per share.

The sources said the stake sale by Abu Dhabi Commercial Bank has complicated the proposed takeover, according to the paper.

"Pricing wise, the takeover doesn't make much sense now. There is going to be a cooling down and the two banks may revisit the prospect of a merger with RHB at some other time," it quoted a senior financial executive as saying.

Meanwhile, CIMB lost four sen to RM8.51 and and Maybank shed two sen to RM8.82.

Other decliners were Aeon that fell 47 sen to RM7.15, Hong Leong Bank lost 44 sen to RM12.90, Ibraco 24 sen to 98 sen, Warisan and BAT fell 20 sen each to RM2.40 and RM46, Golsta 17.5 sen to 32 sen, HLFG 16 sen to RM13.32, Carlsberg 13 sen to RM7.29, KLK 12 sen to RM21.98, while Public Bank and AMMB shed two sen each to RM13.20 and RM6.43.

Shares of the Lion Group of companies were actively traded on news that the group was 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 Lion Group in a filing to Bursa Securities today confirmed it was in exploratory talks with various parties for a potential strategic tie-up but was quick to caution there was no certainty these discussions would “lead to a more definitive and conclusive understanding”.

Lion Corp fell 1.5 sen to 28.5 sen with 42.61 million shares traded; Lion Diversified edged up one sen to 45 sen with 25.7 million shares done and Lion Industries fell one sen to RM1.86 with 9 million shares done.

Other actives included Perisai, Kurnia Asia, Ingenuity Solutions, Compugates, MAA, XOX and Axiata.

Among gainers, Iretex added 13 sen to RM1.23, BIMB 12 sen to RM1.85, while UMS, Goldis, Shell, Metrod and Genting rose 10 sen each to RM1.77, RM1.80, RM10.50, RM3.60 and RM11.30 respectively.

but goreng stock fly wor [You must be registered and logged in to see this image.]