KLCI falls 27 pts, plantations, banks down

KUALA LUMPUR: Blue chips led by plantations and banking stocks fell sharply in early trade Thursday in a knee-jerk reaction to the government’s withdrawal of the bulk of subsidies for fuel under a restructuring exercise to cope with record high oil prices.

Plantation stocks were affected by the government’s decision to impose a windfall tax on oil palm companies effective from July 1, when the crude palm oil prices are in excess of the threshold of RM2,000 per tonne.