FBM KLCI falls below 1,560-level at mid-morning, CIMB in focus

KUALA LUMPUR: The FBM KLCI slipped below the 1,560-point level on Tuesday, July 19 in line with the decline at most key regional markets following weaker overnight close at Wall Street and Europe markets.

Also, CIMB Group Holdings Bhd extended its losses in active trade as the recent news about the central bank of Indonesia possibly introducing a cap on foreign ownership in local banks later this year continued to worry investors.

CIMB lost 12 sen to RM8.44 with 4.48 million shares traded.

However, Inari Bhd made a positive debut on the ACE Market this morning, and was up 2.5 sen to 40.5 sen with 19.7 million shares done.

At 10am, the FBM KLCI fell 5.33 points to 1,557.25. Losers led gainers by 291 to 101, while 179 counters traded unchanged. Volume was 135.86 million shares valued at RM187.91 million.

At the regional markets, Japan’s Nikkei 225 fell 0.71% to 9,903.58, Hong Kong’s Hang Seng Index slipped 0.26% to 21,748.12, the Shanghai Composite Index lost 0.57% to 2,800.59, Taiwan’s Taiex shed 0.20% to 8,521.37, South Korea’s Kospi down 0.24% to 2,125.30 while Singapore’s Straits Times Index added 0.27% to 3,087.18.

The Royal Bank of Scotland strategists in a note July 18 said that there was rising risk that disappointment at the EU Summit (21st July) on the absence of support measures for Spain and Italy would see the crisis worsen.

They said this was their base case scenario given that Europe will deal with Greece, more than one year too late.

“What we are saying is that our previous call of very high systemic risks around the IMF review dates in September and December must be bought forward and based instead around wider EU policy responses.

“The timing risk is quickened because Spain is teetering on the edge of further sharp and highly non-linear yield moves,” they said.

On Bursa Malaysia, Asas fell 34 sen to 99 sen , KLK 18 sen to RM21.28, Berjaya Media 15 sen to 49.5 sen, Nilai 8.5 sen to 95.5 sen, Parkson, Esso, Dialog and Carlsberg eight sen each to RM5.81, RM4.72, RM2.45 and RM7.63 respectively, while Adventa lost seven sen to RM1.91.

Newly-listed Inari was the most actively traded counter. Other actives included DVM, Muda, Axiata, Wijaya, SAAG, Dialog and LBS.

Among the gainers, Petronas Dagangan added 26 sen to RM18.26, Lafarge Malayan Cement 16 sen to RM7.58, LPI Capital eight sen to RM14.02, Sindora, BIMB and BLD PLANTATION []s seven sen each to RM2.41, RM2.19 and RM6.50 respectively, DXN and CI Holdings six sen each to RM1.35 and RM4.07, while Jerneh rose five sen to RM1.32.