KUALA LUMPUR: Selling of Tenaga Nasional, Petronas Chemical and Maxis dragged the FBM KLCI into the red at the close on Monday as investors decided to hold on their cash instead of betting on riskier assets after the weaker corporate results.
At 5pm, the KLCI was down 6.77 points or 0.4% to 1,693.99. Turnover was 3.14 billion shares valued at RM2.16bil. The broader market was mixed with 426 gainers, 448 losers and 384 counters unchanged.
On the external front, Asian stocks made their best two-month start to a year in seven years in January-February, amid growing signs that the US and China are close to striking a trade deal, Reuters reported.
MSCI's broadest index of Asia-Pacific shares added over 8% in the first two months of this year, the biggest since 2012. In February, the index rose 1.3%.
US President Donald Trump's decision to push back the March 1 tariff deadline and the progress in trade talks between the world's top two economies boosted Asian markets last month.
Shares in Hong Kong closed at their highest level in more than eight months. The Hang Seng index rose 0.51% to 28,959.59, its highest close since June 25.Again consumer stocks were among the top losers. BAT and Nestle fell 60 sen each to RM33.32 and RM148.80 while Carlsberg was down 48 sen to RM25 and Heineken lost 20 sen to RM22.58.
However at Bursa, Tenaga fell 12 sen to RM12.96 and erased 1.19 points from the KLCI.
UOB Kay Hian Malaysia Research said “we were unprepared for Tenaga’s hefty impairment”.
Genting was down 11 sen to RM7.13, GentingM and MISC four sen each to RM3.40 and RM6.82 while MAHB gave up nine sen to RM8.03. Press Metal
rose eight sen to RM4.28 and added 0.56 of a point.
Petronas Chemicals fell eight sen to RM9.19 and wiped out 1.11 points, Petronas Dagangan 50 sen to RM26.20 , Petronas Gas four sen to RM17.74 but Dialog gained two sen to RM3.29.
Dayang jumped 18 sen to RM1.36 and Carimin six sen to 87.5 sen in active trade.
As for telcos, Maxis lost eight sen to RM5.31 and erased 1.09 points, Axiata four sen to RM4.15 but Digi added two sen to RM4.58.
UOB Kay Hian Malaysia Research said that Q4 FY18 was another underwhelming quarter.
It said one quarter of the companies under its coverage universe of stocks disappointed in the season, while only 13.7% surpassed expectations.
“The earnings disappointments were broad-based and most notably in the aviation, property, utilities, E&E, and plantation (weak CPO prices) sectors.
“While earnings downside had been well predicted in the plantation, E&E, aviation and property/construction sectors, we were unprepared for Tenaga’s hefty impairment and the depth of earnings declines at AirAsia, MMHE, Sime Darby Plantation, SP Setia and WCT.
“There were only a few prominent beaters such as Syarikat Takaful (strong insurance premium growth), Carlsberg (exceptionally strong sales volume) and Magnum (strong ticket sales and lower prize payout),” it said.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
