KLCI closes at day’s low as Sime, Genting falter

KUALA LUMPUR: Blue chips beat a hasty retreat on Wednesday with the FBM KLCI falling more than 13 points on fund selling of Sime Darby, Genting group and Axiata as the broader market turned negative.

The slide in crude oil prices which also impacted the ringgit and disappointing corporate results, also dented investor sentiment.

At 5pm, the FBM KLCI was down 13.11 points or 0.78% to 1,664.17. Turnover was 1.52 billion shares valued at RM1.51bil. Decliners beat advancers nearly three to one with 601 losers to 229 gainers and 303 stocks unchanged.

Hong Kong shares fell more than 1% on Wednesday, tracking global markets lower, with shares of energy companies again weighing on the benchmark index as oil prices skid, Reuters reported.

European equities fell for a second straight session to a one-week low on Wednesday, with commodities-related shares coming under further selling pressure as prices of copper and crude oil slipped.

The FTSEurofirst 300 index of top European shares was down 1.7% at 1,266.13 by 0930 GMT after falling to 1,265.20, the lowest level in a week, Reuters said.

The ringgit weakened against the US dollar and Singapore unit but firmed up against the weakening pound sterling. The ringgit was at 4.2240 to the greenback from Tuesday’s close of 4.2002 and was weaker against the Singapore unit at 2.9973 from 2.9894. It was quoted at 5.9038 to the pound from 5.9335.

Crude palm oil for third-month delivery fell RM31 to RM2,520. Sime Darby fell 32 sen to RM7.64 after it was impacted by the weaker CPO prices in the second quarter ended Dec 31, 2015 and erased 3.45 points from the KLCI.

IOI Corp rose two sen to RM4.78, PPB Group 18 sen to RM16.08 and KL Kepong gained 28 sen to RM24.48. United Plantations gained 24 sen to RM25.50 and TAHPS 20 sen at RM6.60.

US light crude oil fell 75 cents to US$31.12 and Brent 44 cents lower at US$32.83. Petronas Gas lost 20 sen to RM22.40, Petronas Dagangan 10 sen to RM15.10 and Petronas Chemicals fell two sen to RM7.05 while SK Petro lost nine sen to RM1.90. Petron lost 19 sen to RM6.98.

Genting Malaysia fell 16 sen to RM4.20 and Genting Bhd was down 24 sen to RM7.86 after the release of their results.

Genting Malaysia will double the capital investment under the Genting Integrated Tourism Plan (GITP), which involves redeveloping and transforming Resorts World Genting, from the earlier-announced RM5bil to an estimated RM10.38bil.

Dutch Lady was the worst performer, skidding RM1.98 to RM50.02 while BAT was down 40 sen to RM55.60.

As for telcos, Axiata fell eight sen to RM5.91 and erased 1.20 points from the KLCI lost four sen to RM6.62, Maxis and Digi were flat at RM6.30 and RM5.01.

Among the banks, CIMB lost eight sen to RM4.27, Public Bank six sen to RM18.34, RHB Cap five sen to RM5.45, Maybank one sen to RM8.63 while AmBank was flat and Hong Leong Bank climbed four sen to RM13.12.

Pos Malaysia lost 18 sen to RM2.20 after its weaker results. However, Time dotCom added 18 sen to RM7.48.