Asian markets pare down gains as European euphoria fades

KUALA LUMPUR (Dec 12): Asian markets, including at Bursa Malaysia,
retreated in the afternoon session on Monday as the initial euphoria
over the European leaders’ summit deal to pursue stricter budget rules
and a stronger fiscal union did little to abate fears of a deepening
financial crisis in the region.

European shares fell on Monday as euphoria over a European Union deal
on deeper economic integration faded, weighed by concerns over
politicians' response to the debt crisis in the short-term and the
likely impact of austerity measures on growth, according to Reuters.

The FBM KLCI could not sustain its earlier gains and closed 0.48% or
6.97 points higher at 1,467.10. The index had earlier risen to its
intra-day high of 1,474.55.

Losers overtook gainers by 362 to 357, while 325 counters traded
unchanged. Volume was 1.6 billion shares valued at RM1.13 billion.

At the regional markets, Japan’s Nikkei 225 close 1.36% higher at
8,653.82, South Korea’s Kospi up 1.33% to 1,899.76, Taiwan’s Taiex
gained 0.81% to 6,949.04 and Singapore’s Straits Times Index edged up
0.26% to 2,701.72.

Meanwhile, the Shanghai Composite Index fell 1.02% to 2,291.54 and Hong Kong’s Hang Seng Index shed 0.06% to 18,575.66.

On Bursa Malaysia, Nestle was the top gainer and rose RM1.52 to
RM55.90; Dutch Lady gained RM1.06 to RM25.98, PPB 30 sen to RM16.60, GAB
and Tahps 28 sen each to RM12.28 and RM4.48, Proton 24 sen to RM4.23,
while Inno, F&N and Genting rose 20 sen each to RM1.50, RM18 and
RM10.82.

Among the decliners, MISC and Lafarge Malayan Cement fell 20 sen each
to RM5.60 and RM6.66, Ajinomoto, DKSH and BAT lost 10 sen each to
RM3.92, RM1.73 and RM47.20 respectively, Quality Concrete down nine sen
to RM1.25, Boxpak eight sen to RM1.72 while Malpac lost seven sen to
RM1.33.

The actively traded stocks included Utopia, Proton, Sanichi, Compugates and Flonic.