KLCI slumps at midday on Friday as Genting, Axiata fall

KUALA LUMPUR: Blue chips fell at the midday break on Friday as the market underwent some consolidation after the recent gains, with profit taking seen in Genting Bhd and Axiata.

Weighing down market sentiment were the weaker May export data in Malaysia and softer China manufacturing data.

At 12.30pm, the KLCI was down 4.92 points or 0.3% to 1,649.16. Turnover was 589 million shares valued at RM377.69mil. Decliners beat advancers 340 to 218 while 301 counters were unchanged.

The ringgit rose to 5.3212 against the pound sterling from 5.4318 while it strode past the US dollar to 3.9925 from 4.0288. It firmed up against the Singapore dollar to 2.9694 from 2.9865 and was at 4.4302 to the euro from 4.4804.

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, in contrast with economists' forecast of a 2% increase.

Reuters reported China's factories flatlined in June as exports shrank and jobs were cut, a worrying trend evident across Asia that argues for yet more policy stimulus as doubts gather over the potency of measures taken so far.

 Oil prices rose early on Friday, with Brent jumping back above US$50 per barrel, as investors positioned themselves for more price increases this year in expectation of a tighter market, the wire reported. US light crude rose 30 cents to US$48.63 and Brent 34 cents higher at RM50.05.

Crude palm oil for third month delivery fell RM5 to RM2,348 per tonne. Petronas Chemicals were flat at RM6.61, Petronas Gas rose two sen to RM22.02 and Petronas Dagangan eight sen higher at RM23.48.

Among the plantations, PPB Group fell 12 sen to RM16.38 while Riverview was down 10 sen to RM3.60. IOI Corp and KL Kepong were flat at RM4.34 and RM23.26. Sime Darby shed one sen to RM7.58. However, Batu Kawan rose 20 sen to RM18 and Sarawak Oil Palm 12 sen to RM4.12 in thin trade.

As for consumer stocks, BAT gave up part of Thursday's late gains, slumping 54 sen to RM52.16. However, Heneiken rose 28 sen to RM15.42.

Genting Bhd fell 13 sen to RM8.07 and erased 0.8 of a point from the KLCI, Genting Malaysia nine sen down to RM4.36 and wiped out 0.88 point. Tenaga lost two sen to RM14.08.

Among the banks, Maybank rose five sen to RM8.19 and nudged the KLCI up 0.82 of a point, Public Bank shed two sen to RM19.38, CIMB fell three sen to RM4.34 and Hong Leong Bank was flat at RM2.86. However, HLFG jumped 28 sen to RM14.96.

As for telcos, Axiata fell six sen to RM5.57, Digi and Telekom gained one sen each to RM4.79 and RM6.78 while Maxis gained three sen to RM5.92. Time dotCom skidded 17 sen to RM7.43.

Among the key regional markets,

Japan’s Nikkei 225 rose 0.81% to 15,702.56;

CSI 300 edged up 0.14% to 3,158.38;

Shanghai’s Composite Index added 0,19% to 2,935.20;

Taiwan’s Taiex added 0.97% to 8,750.45;

South Korea’s Kospi jumped 1.12% to 1,992.39;

Singapore’s Straits Times Index shed 0.04% to 2,839.68.

Spot gold rose US$7.97 to US$1,329.87.