FBM KLCI slips on mild profit taking

KUALA LUMPUR: Mild profit taking at banking stocks and select blue chips weighed the FBM KLCI down marginally at the close on Monday, July 4 while European banking stocks opened sharply lower after credit rating agency Standard & Poor's raised fresh concerns over private sector involvement in a second Greek bailout package.

S&P said current French plans to roll over Greek debt held by private banks would likely constitute a "selective default", increasing uncertainty over the structure of a future debt deal and prompting profit-taking among major banking stocks, according to Reuters.

The cost of insuring Greek sovereign debt against default rose on the S&P comments, with five-year credit default swaps (CDS) on Greek government debt up 48 basis points at 1,900 basis points (19%), it said.

Meanwhile, most of the key regional markets, with the exception of China’s markets, pared down their gains today.

The FBM KLCI shed 0.04% or 0.59 point to close at 1,582.35.

Losers led gainers by 453 to 333, while 304 counters traded unchanged. Volume fell to 728.9 million shares valued at RM1.38 billion from 801.95 million shares valued at RM1.40 billion last Friday.

At the regional markets, Hong Kong’s Hang Seng Index closed 1.66% higher at 22,770.47, the Shanghai Composite Index rose 1.94% to 2,812.82, South Korea’s Kospi was up 0.92% to 2,145.30, Singapore’s Straits Times Index added 0.46% to 3,153.44 and Taiwan’s Taiex edged up 0.40% to 8,774.72.

Among the losers, UMW and AirAsia fell 17 sen each to RM7.31 and RM3.46, BAT lost 16 sen to RM46.54, Far East 15 sen to RM7.20, UMS and Malayan Flour Mills 14 sen each to RM1.68 and RM8.13, JT International 13 sen to RM7.05, Petronas Chemicals five sen to RM7.11, MISC four sen to RM7.45, Sime Darby three sen to RM9.25 and IOI Corp two sen to RM5.28.

Among banking stocks, RHB Capital lost 12 sen to RM9.03, CIMB five sen to RM8.88, HLFG four sen to RM13.12, Hong Leong Bank two sen to RM13.48 and Maybank down one sen to RM8.94.

Lion Corp was the most actively traded counter with 17.86 million shares done. The stock added two sen to 30 sen.

Other actives included TMS, XDL, MSM, HWGB, UEM Land, Maybank and Focus.

Among the gainers, KLK rose 30 sen to RM22.52, DiGi 28 up 28 sen to RM29.50, Metrod 20 sen to RM4, Eng Kah 17 sen to RM3.30, NCB 13 sen to RM4.40, Ivory 12.5 sen to RM1.11, while MSM, Aeon and Uli-Corp added 12 sen each to RM5.10, RM7.35 and RM1.16 respectively.