KUALA LUMPUR: Blue chips ended Friday on a weak note, dragged down by selling of Axiata, Genting and YTL following the weaker May exports and softer China manufacturing data, in contrast with the key Asian markets.
At 5pm, the FBM KLCI was down 7.86 points or 0.48% to 1,646.22. Turnover was 1.13 billion shares valued at RM1.13bil. Decliners led advancers 413 to 295 while 332 counters were unchanged.
Malaysia's May exports disappointed following slower growth in its main trading partner, China. Exports fell -0.9% to RM59.9bil from a year ago versus economists' forecast of a 2% increase. China's factories flatlined in June as exports shrank and jobs were cut.
AllianceDBS Research said Bank Negara, had in March, forecast exports to expand 2.4% this year (2015: +1.9%). This would imply that the average % on-month exports growth for the rest of the year would have to be sustained at 4.0%.
“However, if the exports trend follows a similar growth path in 2015, we believe that full-year exports growth could moderate to around 1.6%, falling short of the official target.
“For now, our full-year 2016 GDP growth target of 4.5% (2015: +5.0%) is under review. We will take into account upcoming industrial production performance data and revise our GDP expectations downward accordingly,” it said.
However, the ringgit advanced against the major currencies on hopes of a rate cut by Bank Negara. It rose to 3.9983 to the US dollar from 4.0288 the previous day while it advanced against the pound sterling to 5.3192 from 5.4318.
Against the Singapore dollar, it was at 2.9738 from 2.9865 while the ringgit also firmed up against the euro to 4.4404 from 4.4804.
On the external front, key Asian markets ended the week higher, recovering from last week's selldown after Britain voted to leave the EU. Hopes of more central banks' intervention propped up sentiment.
Axiata fell 12 sen to RM5.51 and weighed down the KLCI when it erased 1.80 points from the 30-stock index. Maxis rose six sen to RM5.95 while Digi and Telekom were fla t at RM4/.78 amd RM6.77. Time dotCom lost 19 sen to RM4.71.
Genting Bhd
lost 19 sen to RM8.01 and wiped out 1.21 points while Genting Malaysia was down 10 sen to RM4.35. YTL lost six sen to RM1.16 and wiped out 1.10 points and MISC shed nine sen to RM7.73 while Tenaga was down six sen to RM14.04.
Among the banks, Maybank rose six sen to RM8.20 and pushed the KLCI up 1.02 points, RHB Bank edged up one sen to RM5.13, Public Bank was flat at RM19.40, AmBank fell five sen to RM4.39 and CIMB six sen to RM4.31.
Crude oil price gave up early gains as US light crude fell 27 cents to US$48.06 and Brent 25 cents lower at RM49.46.
Petronas Chemicals fell four sen to RM6.57, Petronas Gas eight sen to RM21.92, SK Petro four sen to RM1.43 but Petronas Dagangan added eight sen to RM23.48.
Crude palm oil for third month delivery rose RM13 to RM2,366 but PPB Group lost 12 sen to RM16.38, KL Kepong eight sen lower at RM23.18 but Sime and IOI Corp added one sen each to RM7.60 and RM4.35.
However, Batu Kawan added 20 sen to RM18, Sarawak Plantations 15 sen to RM2.06 and Sarawak Oil Palms 12 sen to RM4.12.
Among the key regional markets,
Japan’s Nikkei 225 rose 0.68% to 15,682.48;
Shanghai’s Composite Index gained 0.1% to 2,932.48;
Taiwan’s Taiex rose 0.83% to 8,738.24;
South Korea’s Kospi rose 0.86% to 1,987.32;
Singapore’s Straits Times Index gained 0.19% to 2,846.37.
Spot gold climbed US$11.24 to US$1,333.15.
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