Malaysia's stock market sees biggest drop in 3 weeks

by **hlk** Tue 05 Jun 2012, 10:38

KUALA LUMPUR: Local stocks fell 18.41 points, or 1.17 per cent, to 1.555.18 yesterday, the biggest in three weeks, after investors are spooked by the global economy's near-term outlook following a string of poor economic data.

Markets in the region were not spared as well, with Japan's Nikkei 225 Index, Hong Kong's Hang Seng Index, Taiwan's Taiex, South Korea's Kospi and Singapore's FTSE Straits Times Index all suffering a decline of about two per cent.

The region's biggest casualties were Indonesia and the Philippines, with the benchmark Jakarta Composite Index and PSEi declining by 3.82 per cent and 3.4 per cent, respectively.

"What is happening now is not unexpected. With much of the negativity still lingering in the markets from last week, we expect bearish sentiment to remain over the near-term," said the research head of a local brokerage.

"With the Euro 2012 football tournament just around the corner, punters may also opt to exit the volatile equities market and test their football punting skills."

There were 674 losers yesterday, with the biggest casualties including Shell Refining Co Bhd, Kuala Lumpur Kepong Bhd, PPB Group Bhd, Dutch Lady Bhd, British American Tobacco Bhd.

The day's biggest winners include Pacificmas Bhd, KLCC Properties Bhd, Panasonic Manufacturing Malaysia Bhd, and Fraser & Neave Holdings Bhd.

Pacific Mas' shares rose the most - by RM1.01 - to close at RM4.31 after the company announced a hefty interim special dividend of more than RM2.40 a share.