Key regional markets in the red, KLCI dn 0.39%

KUALA LUMPUR: Key regional markets were in the red on Monday, with Japan, Hong Kong and Singapore registering more than 2% in losses on growing pessimism over the lingering Eurozone debt crisis.

At Bursa Malaysia, the FBM KLCI fell 0.39% or 6.17 points to 1,584.87. Turnover was 963 million shares valued at RM1.19bil. Losers bear gainers 540 to 208 while 305 stocks were unchanged.

Japan's Nikkei 225 fell 2.78% to 9,119.14, Hong Kong's Hang Seng Index 2.61% to 20,536.65 and Singapore's Straits Times Index 2.19% to 2,924.95. All key European markets were in the red also.

Market sentiment was impacted by the fall on Wall Street last Friday. This was further worsened by news that Greek voters trounced ruling parties in elections on Sunday, a result that put the country's future in the euro zone at risk, and as Socialist candidate Francois Hollande won the French presidency.

However, the head of the euro zone's temporary rescue fund Klaus Regling said on Monday said a 750bil euro (US$976bil) firewall built to fight the euro zone debt crisis should be sufficient.

"When I look at the countries that are often discussed, we know exactly how big their financing needs are," Regling said, adding they were below 750bil euros for the next two years. I don't share this pessimism that it all won't suffice," he was quoted saying by Reuters.

At Bursa Malaysia, dealers said investors stayed on the sideline on worries about the Eurozone crisis and the lack of positive rerating catalysts.

Tenaga and Petronas Chemicals dragged the KLCI down nearly 2.3 points. Tenaga and PetChem fell 10 sen each to RM6.50 and RM6.55. Genting Bhd shed eight sen to RM10.56 and AirAsia 10 sen to RM3.54 while HL Bank gave up 16 sen to RM12.20. Dutch Lady lost 34 sen to RM33.04 while IJM shed 16 sen to RM5.42.

Among plantations, Tradewinds Plantations lost 23 sen to RM5.75, Genting Plantations 16 sen to RM9.44 and TAHPS 15 sen to RM4.65 while heavyweights IOI and Sime lost two sen each to RM5.25 and RM9.77.

Atlan fell 14 sen to RM4.26. Berjaya Corp Bhd (BCorp) had last week acquired 20 million shares or 7.9% stake in Atlan for RM85 million or RM4.25 per AHB share. With the acquisition, BCorp now holds 23.23 million AHB shares, representing 9.18% of the voting shares.

Permaju was the top gainer, up 20 sen to 73 sen with 16 million shares done. The company was queried over the unusual market activity.

Tasek added 13 sen to RM9.03, GAB 12 sen to RM13.16, Lafarge 11 sen to RM7.35 and MKH 10 sen to RM2.20.