Asian mkts dn on eurozone ratings downgrade fears

KUALA LUMPUR (Dec 13): The FBM KLCI fell on Tuesday in line with the
downcast sentiment at key regional markets and the sharp overnight fall
at Wall Street.

The mood at regional markets darkened after ratings agency Moody's
said it would review ratings of all EU member states in the first
quarter of 2012, while rival Fitch said the summit had failed to provide
a "comprehensive" solution to the debt crisis, according to Reuters.

At mid-morning, the FBM KLCI was down 4.61 points to 1,462.49.

Losers led gainers by 207 to 134, while 203 counters traded
unchanged. Volume was 290.41 million shares valued at RM163.29 million.

Asian stocks sank on Tuesday and the euro languished near a two-month
low as investors took fright at the prospect of mass euro zone
sovereign ratings downgrades after the outcome of a "last chance"
European Union summit failed to convince markets, said Reuters.

At the regional markets, Hong Kong’s Hang Seng Index lost 1.39% to
18,316.90, Japan’s Nikkei 225 fell 1.38% to 8,534.79, South Korea’s
Kospi was down 1.68% to 1,867.83, Singapore’s Straits Times Index lost
0.95% to 2,675.95, Taiwan’s Taiex fell 0.91% to 6,885.53 and the
Shanghai Composite Index was down 0.45% to 2,281.26.

Maybank Investment Bank Bhd head of retail research and chief
chartist Lee Cheng Hooi in a note to clients Tuesday said the FBM KLCI’s
resistance areas of 1,470 and 1,494 would cap market gains, whilst the
weaker support areas may be located at 1,447 and 1,467.

“Due to the US markets’ poorer tone last night, we will have a
volatile day for the local index today with further profit taking and
liquidation,” he said.

On Bursa Malaysia, PPB was the top loser at mid-morning and fell 24
sen to RM16.36; Genting lost 18 sen to RM10.64, Petronas Dagangan and
Panasonic down 14 sen each to RM17.04 and RM19.90, Genting PLANTATION []s
down 12 sen to RM8.16, QSR ten sen to RM5.80, while MMHE, Malayan Flour
Mills and CIMB lost eight sen each to RM5.42, RM7.50 and RM6.87
respectively.

Among the gainers, Proton was in focus and rose 15 sen to RM4.38 in
active trade after the Edge Financial Daily reported today that
DRB-HICOM BHD [] could be paying RM5.90 per share for Khazanah Nasional Bhd’s 42.7% stake in Proton.

Other gainers included GAB, Nestle, Dutch Lady, Carlsberg, KLK, JT International, CI Holdings, Tradewinds and AIC.

Meanwhile, the actives included Sanichi, DRB-Hicom warrants, Proton warrants and Astral Supreme.