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.
At 9.30am, the KLCI was down 27.02 points to 1,226.10. Turnover was 71.57 million shares valued at RM190.56mil. There were 40 gainers, 325 losers while 67 stock were unchanged.
KL Kepong fell 80 sen to RM16.60, Batu Kawan and Sime Darby 40 sen each to RM10.60 and RM8.70 while IOI Corp lost 30 sen to RM7.
Expectations of a weaker economic growth saw BCHB falling 40 sen to RM9, Public Bank 30 sen to RM11, Hong Leong Bank 25 sen to RM5.90, AMMB 16 sen to RM3.64 and Hong Leong Finance 15 sen to RM5.90.
Companies with independent power production operations fell. MMC Corp, which owns the privatised Malakoff, fell 36 sen to RM3.04, Tanjong 30 sen to RM15.60 and Genting 15 sen to RM5.90. Tanjong owns Powertek and Genting, Genting Sanyen.
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