KUALA LUMPUR: Malaysia's blue chips came under a second day of battering on Thursday as foreign funds cut their stakes in key banks on worries about the RM1 trillion national debt and the 1Malaysia Development (1MDB) debt.
In the latest development, Finance Minister Lim Guan Eng announced that Malaysia will honour the commitment and pay the 1MDB debt as scheduled. He added that 1MDB had been insolvent since 2016.
At 5pm, the FBM KLCI was down 28.59 points or 1.58% to 1,775.66 and it was the lowest since Dec 28, 2017. In percentage terms, it was the worst performer for the second day. On Wedneday, the KLCI tumbled 40 points in a broad selloff.
Foreign funds were net sellers at RM322.8mil while local institutions were net buyers at RM226.5mil and retailers at RM96.3mil.
Turnover was 2.87 billion shares valued at RM3.86bil. There were 235 gainers, 752 losers and 378 counters unchanged.
The country's top three banks Maybank, Public Bank and CIMB came under pressure. Maybank fell 42 sen to RM109.26 and wiped put 8.23 points from the KLCI while Public Bank lost 74 sen to RM24.36 and wiped out 5.14 points. CIMB fell 17 sen to RM6.05 and erased 2.85 points.
RHB Bank
lost five sen to RM5.35, AmBank three sen to RM3.54 but Hong Leong Bank gained 10 sen to RM19.
Axiata continued to slide, falling 13 sen to RM4.30 after the disappointing results. Telekom lost three sen to RM3.97, Digi one sen to RM4.55 but Maxis gained three sen to RM5.76.
Power giant Tenaga lost 16 sen to RM14.76, Genting Malaysia 17 sen to RM4.93 and Genting Bhd edged up one sen to RM8.44. IHH Healthcare lost 14 sen to RM6.18 and MISC 16 sen lower at RM6.06.
Crude palm oil for third month delivery rose RM21 to RM2,494 per tonne, highest since April 6.
As for plantations, PPB Group fell four sen to RM19.86, KL Kepong was flat at RM25 and IOI Corp edged up one sen to RM4.73.
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