Weak corporate results sink KLCI at midday

The key FBM KLCI fell briefly below the crucial 1,600 level in afternoon trade on Monday on mounting selling pressure in line with the key Asian markets.

KUALA LUMPUR: Weak corporate results pushed blue chips deeper into the red at midday on Monday despite the firmer exports data which exceeded forecast and strong crude oil prices.

At 12.30pm, the KLCI was down six points or 0.35% to 1,694.76. Turnover was 1.77 billion shares valued at RM1.03bil. There were 392 gainers, 381 losers and 335 counters unchanged.

Most key Asian markets were higher at midday on reports US officials are preparing a final trade deal that US President Donald Trump and his Chinese counterpart Xi Jinping could sign in weeks.

The ringgit rose 0.04% against the weaker US dollar to 4.0725. Trump said on Saturday that the US dollar is too strong and took a swipe at Federal Reserve Chairman Jerome Powell as someone who “likes raising interest rates”.

On the recent corporate results, UOB Kay Hian Malaysia Research said the Q4, FY18 reporting season was not short of disappointments, with disappointments outnumbering earnings beats by two to one.  “We cut our 2019 earnings forecast by 4.3% for the KLCI, and 3.1% for our universe coverage,” it said. 

US light crude oil rose 28 cents to US$56.08 and Brent edged up 30 cents to US$65.37.

At Bursa, Petronas Dagangan lost 62 sen to RM26.08 and erased 0.96 of a point while Petronas Chemical fell 10 sen RM9.17 and wiped out 1.24 points while Petronas Gas gained eight sen to RM17.86.  PEnergy gained 21.5 sen to RM1.12, Dayang 19 sen to RM1.37.

However, the fourth quarter losses saw Tenaga extending its decline, down 14 sen to RM12.94 and erased 1.24 points while Genting Bhd lost eight sen to RM7.16, MAHB  lost 17 sen to RM7.95 but IHH rose two sen to RM5.81.

Consumer stocks were among the top losers, Nestle down RM1.10 to RM148.30 and Carlsberg 48 sen lower at RM25.

Crude palm oil rose RM15 to RM2,204 per tonne.  Sime Darby Plantation rose one sen to RM5.12 but IOI Corp shed one sen to RM4.51.

Among the banks, Maybank rose one sen to RM9.54, Public Bank was unchanged at RM25.02,  CIMB fell three sen to RM5.65 and Hong Leong Bank six sen lower at RM21.22. RHB Bank rose 11 sen to RM5.80.

Time dotCom was the top gainer, up 40 sen to RM8.60 while Aeon Credit added 26 sen RM16.96.