Asian markets dip on Europe, US debt worries

KUALA LUMPUR: Asian stock markets were mired in the red on Monday, July 18 as a confluence of debt concerns in Europe and the US, as well as eight European banks failing the European Central Bank stress test, spooked investors.

Locally, banking stocks weighed on the FBM KLCI on reports that the central bank of Indonesia could introduce a cap on foreign ownership in local banks later this year, while PLANTATION [] stocks declined on weaker crude oil prices.

Also, TENAGA NASIONAL BHD [] shares declined on expectations of weak third quarter results when it announces the results on Thursday.

The FBM KLCI fell 0.93% or 14.67 points to 1,562.56 as losers thumped gainers by 646 to 159, while 268 counters traded unchanged. Volume was 753.77 million shares valued at RM1.38 billion.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.32% to 21,804.75, the Shanghai Composite Index shed 0.12% to 2,816.69, Taiwan’s Taiex declined 0.42% to 8,538.57, South Korea’s Kospi lost 0.69% to 2,130.48 and Singapore’s Straits Times Index was down 0.17% to 3,078.95.

Analysts said investors would also be looking at external factors, including the US debt ceiling deadline review (on August 2) and the next Greek EU/IMF loan review (in September), as well as key corporate earnings over the coming week that includes Goldman Sachs, Bank of America Merrill Lynch, Apple, GE and IBM.

On Bursa Malaysia, CIMB Group Holdings Bhd was actively traded and fell 19 sen to RM8.56with 23 million shares done.

HONG LEONG BANK BHD [] lost 16 sen to RM13.44, BIMB HOLDINGS BHD [] 13 sen to RM2.12, HONG LEONG FINANCIAL GROUP BHD [] eight sen to RM13.40, MALAYAN BANKING BHD [] five sen to RM8.82, PUBLIC BANK BHD [] four sen to RM13.34, AMMB HOLDINGS BHD [] and RHB CAPITAL BHD [] three sen each to 6.37 and RM9, while ALLIANCE FINANCIAL GROUP BHD [] was down one sen to RM3.53.

Tenaga fell 22 sen to RM6.52 with 3.52 million shares done after CIMB Equities said in a report that Tenaga's 3QFY8/11 results were likely to miss its expectations but meet consensus forecasts.

Among plantations, KUALA LUMPUR KEPONG BHD [] fell 20 sen to RM21.46, UNITED PLANTATIONS BHD [] 14 sen to RM20.02, IOI CORPORATION BHD [] seven sen to RM5.23, SIME DARBY BHD [] three sen to RM9.09 and PPB GROUP BHD [] two sen to RM17.42.

Other decliners included TRADEWINDS (M) BHD [], DUTCH LADY MILK INDUSTRIES BHD [], GENTING BHD [] and Axiata Group Bhd.

DVM TECHNOLOGY [] BHD [] was the most actively traded counter with 29.2 million shares done. The stock gained half a sen to 12.5 sen. Other actives included HUBLINE BHD [], CIMB, Axiata and DIALOG GROUP BHD [].

Gainers included SINDORA BHD [], CI Holdings Bhd, ENG TEKNOLOGI HOLDINGS BHD [], HARTALEGA HOLDINGS BHD [] and KFC HOLDINGS (M) BHD [].