Market Close KLCI slumps 24.66pts amid weaker US, China growth sentiment

by **Cals** Tue 05 May 2015, 01:32

Market Close
KLCI slumps 24.66pts amid weaker US, China growth sentiment
KUALA LUMPUR (Apr 30): The FBM KLCI slumped 24.66 points or 1.3% to 1,818.27 points to join Asian markets that ended in the red. Global share markets have taken the cue from weaker growth prospects in the US, and China, besides Greece's government financials.
In Malaysia, stocks such as Petronas Chemicals Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Genting Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) and Kuala Lumpur Kepong Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) contributed to the KLCI's loss.
Across Asian share markets, Japan’s Nikkei 225 was down 2.69%, while South Korea’s Kospi fell 0.72%. In China, Hong Kong’s Hang Seng closed 0.94% lower.
Reuters reported that the US economy grew just 0.2% in the first quarter, down sharply from the previous quarter's 2.2% growth. The disappointing data further dimmed already faint prospects for an interest rate hike in June by the Federal Reserve.
The disappointing news on the world's biggest economy comes on top of a worrying slowdown in China and persistent worries about Europe as Greece scrambles to avoid bankruptcy.
In Malaysia, Areca Capital CEO Danny Wong described the US Federal Reserve’s statement following the slower growth figures as “uneventful”.
“It seems like a dovish statement with no aggressive stance on interest rate hike,” Wong told theedgemarkets.com over the telephone.
The KLCI's decline came ahead of an extended weekend. Bursa Malaysia will be closed tomorrow (May 1) for Labour Day and this Monday (May 4) in conjunction with Wesak Day.
Today, Bursa Malaysia saw 1.52 billion shares worth RM2.17 billion were traded. Market gainers trailed decliners by 372 versus 422 while 330 counters were unchanged.
Top gainers included United Plantations Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) and Westports Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) while the leading decliner was Kuala Lumpur Kepong Bhd. The most-active counter was DGB Asia Bhd.
Among gainers, Westports rose 20 sen or 5% to close at its intraday high of RM4.50 after the company reported today net profit climbed to RM120.19 million in the first quarter ended March 31, 2015 from RM109.04 million a year earlier.
Revenue was higher at RM398.72 million versus RM363.16 million.
In currency markets, the ringgit weakened against the US dollar at 3.5633. Compared to the Singapore dollar, the ringgit appreciated to 2.6931.
Reuters reported that views on the Malaysian ringgit turned bullish for the first time since late August. Oil prices have stabilised recently, easing concerns that sliding crude may hurt the finances of Malaysia — a net oil exporter. Bond inflows also supported the ringgit.