Maybank is the largest bank in Malaysia with consolidated assets of RM702bil at end-March 2016
KUALA LUMPUR: Sustained selling pressure on the country’s top banks and Axiata pushed the FBM KLCI deeper into the red on Wednesday as investors worried about the weakening ringgit and the fall in commodity prices, with foreign funds stepping up their selling again.
At 5pm, the KLCI was down 19.02 points or 1.18% to 1,590.19. Turnover was 1.88 billion shares valued at RM2.12bil.
However, the broader market was steadier as the number of losers eased towards the later part of the day on some buying of mid-cap stocks. There were 379 gainers, 347 losers and 312 counters unchanged.
Foreign funds were net sellers at -RM268.48mil but local institutions were net buyers at RM208.36mil and local retailers net buyers also at RM60.12mil.
Market sentiment had been badly impacted by the weakening ringgit, the fall in crude oil prices and crude palm oil and sustained selling of equities by foreign funds.
Most key Asian markets were in the red except for Taiwan and South Korea.
Reuters reported emerging equities fell for the third day running on Wednesday, approaching six-year lows on deepening concerns about global growth, as oil price weakness fuelled another drop in the Russian rouble.
Data this week showed manufacturing and exports contracted in several emerging economies. Chinese output contracted in August at the sharpest pace in three years while European and US growth also eased. That has kept emerging assets close to multi-year or record lows, said Reuters.
At Bursa Malaysia, Maybank fell 35 sen to RM8.42 and wiped out a hefty 5.66 points from the KLCI. Public Bank fell 26 sen to RM17.74 and erased 1.74 points, AmBank 24 sen to RM4.44 and CIMB shed seven sen to RM4.77.
US light crude oil fell 95 cents to US$44.46 and Brent 66 cents lower at US$48.90.
Heavyweight SapuraKencana Petroleum lost 10 sen to RM1.69, also down 10 sen was Petronas Gas to RM21.30, Petronas Daganagan eight sen to RM20.92 and Petronas Chemical four sen to RM6.02.
UMW fell 43 sen to RM7.94, power giant Tenaga lost six sen to RM11.12 and Genting Bhd
15 sen to RM6.99.
Crude palm oil for third month delivery fell RM29 to RM1,984 – the lowest since Aug 26’s RM1,867.
Surprisingly, KL Kepong chalked up gains of 62 sen to RM21.02, Far East 30 sen to RM7.50, Genting Plantations 25 sen to RM9.92, Sime three sen to RM7.50, PPB four sen to RM15.20 but IOI Corp lost five sen to RM3.89.
Among the telcos, Axiata fell 29 sen to RM5.91, Maxis shed one sen to RM6.55, DiGi gained one sen to RM5.09 while TM added two sen to RM6.50.
AirAsia rose 5.5 sen to 95.5 sen in active trade.
Among the key regional markets,
Japan’s Nikkei 225 fell 0.39% to 18,095.40;
Hong Kong’s Hang Seng Index fell 1.18% to 20,934.94;
CSI 300 rose 0.11% to 3,365.83;
Shanghai’s Composite Index fell 0.2% to 3,160.17;
Shenzen Composite fell 1.98% to 1,673.95;
Hang Seng China Enterprise fell 1.62% to 9,301.32;
Taiwan’s Taiex rose 0.22% to 8,035.29;
South Korea’s Kospi rose 0.05% to 1,915.22 and
Singapore’s Straits Times Index fell 0.16% to 2,878.13.
Spot gold fell 49 cents to US$1,139.78.
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