KLCI worst performer on Monday, CMSB top loser

KUALA LUMPUR: Malaysia's stock market was the worst performer on Monday, with the FBM KLCI extending the losses by more than seven points at the close as Axiata, CIMB and Petronas Gas the main decliners while a slump in CMSB's earnings saw it emerging as the top loser.

At 5pm, the KLCI was down 7.05 points or 0.43% to 1,621.21 and year-to-date it is down 4.21%. Turnover was 1.7 billion shares valued at RM1.69bil. 

The broader market was cautious as decliners beat advancers two to one or 539 losers to 250 gainers while 337 counters were unchanged.

UOB Kay Hian Malaysia Research, in its startegy report, said it foresees limited downside and trading opportunities in the KLCI with last Friday's market selloff of the KLCI (-1.26%), due to the rebalancing of the MSCI (resulting in lowered weightings of most Malaysian component stocks in MSCI). 

“The KLCI has fallen by 5.4% from this year's high, and is trading only 1.50% higher than this year's low in February. While we remain cautious in 2Q16 ahead of a likely US rate hike in June, we maintain our view that the KLCI's trading range would be tighter than in 2015 (amid a lower country risk premium).

“Specifically, we believe values have returned to some of our Buy-rated large-cap stocks such as Maybank and Genting Bhd. Our top large-cap picks are Maybank, Genting Bhd, Gamuda and Tenaga,” UOB Kay Hian Research said.

The ringgit was mostly firmer against the main currencies. It strengthened to 4.0273 to the US dollar from 4.0310 last Friday, it was at 5.7828 to the pound sterling from 5.8100 and advanced against the euro to 4.5594 from 4.5755.  It dipped against the Singapore dollar to 2,9429 from 2.9410.

CMSB was the top loser, down 48 sen to RM3.30 with 8.33 million shares agfter the disappointing results. 

Its total comprehensive income attributable to the owners fell 75.2% to RM11.77mil from RM47.46mil a year ago due to losses from associates. Profit attributable to the owners of the company fell to just RM1.05mil in the first quarter ended March 31, 2016 from RM57.42mil a year ago.

Among the KLCI stocks, Axiata fell 13 sen to RM5.40 and erased 1.96 points from the KLCI, Digi shed one sen to RM4.39 while Maxis and Telekom were flat at RM5.46 and RM6.63.

US light crude oil rose 83 cents to US$47.04 and Brent added 84 cents to US$48.67. Petronas Gas lost 40 sen to RM20.92 but Petronas Dagangan and Petronas Chemicals edged up two sen each to RM22.72 and RM6.22. SK Petro was flat at RM1.58.

Crude palm oil for third-month delivery rose RM2 to RM2,585 per tonne. KL Kepong rose 24 sen to RM23.10, PPB Group 20 sen to RM15.78, IOI Corp lost one sen to RM41.2 and Sime Darby two sen lower at RM7.26. United Plantations fell 38 sen to RM26.30 and Genting Plantations-WA lost 22 sen to RM2.52.

Among the consumer stocks, BAT fell 42 sen to RM48 and F&N was down 14 sen to RM23.40.

As for banks, Hong Leong Bank fell the most, down 14 sen to RM13.30, CIMB was down 10 sen to RM4.30 and wiped out 1.49 points from the KLCI, RHB Cap and Public Bank shed four sen each to RM19 and RM5.90 while AmBank gained six sen to RM4.47.

LKL, which made its debut on the Ace Market, ended its first trading day eight sen higher at 28 sen with 132.9 million shares done.

Tenaga and MISC were flat at RM14 and RM7.44 while Genting Bhd lost five sen to RM8.56.

Among the key regional markets,

Japan’s Nikkei 225 rose 0.33% to 16,466.40;

Hong Kong’s Hang Seng Index rose 0.84% to 19,883.95;

CSI 300 rose 0.66% to 3,095.31;

Shanghai’s Composite Index added 0.84% to 2,850.86;

Shenzhen Composite rose 1.72% to 1,815.03;

Hang Seng China Enterprise added 0.14% to 8,312.61;

Taiwan’s Taiex gained 0.17% to 8,067.60;

South Korea’s Kospi inched up 0.05% to 1,967.91; and

Singapore’s Straits Times Index shed 0.01%to 2,734.55.

Spot gold gained US$8.75 to US$1,282.20.