KUALA LUMPUR: China’s markets plunge of between 5% and 6% on Monday – the third time since last week – raised concerns about the weakening Chinese economy but the fallout caused less damage than previously while the FBM KLCI closed at the day’s low.
Bursa Malaysia was also impacted by the slower-than-expected industrial output data for November which was released at midday and the move by Moody's Investors Service to lower the outlook of the ratings of the government of Malaysia from positive to stable.
Despite the weaker market sentiment, the ringgit managed to recover from the intra-day lows after China guided its yuan currency stronger for a second straight session on Monday, in a move that might calm concerns about how far Beijing would let the currency fall.
At the close, the KLCI was down 20.02 points or 1.21% to 1,637.59 where 29 out of the 30 stocks of the index fell. Turnover was 1.90 billion shares valued at RM1.94bil. Decliners beat advancers more than two to one or 657 losers to 300 gainers and 303 counters unchanged.
The ringgit was firmer against the US dollar to 4.3853 from the previous close of 4.3920; while it firmed up against the poud sterling at 6.3910 from 6.4195 and it was at 3.0539 against the Singapore dollar from 3.0562.
Reuters reported Hong Kong shares finished down on Monday after major mainland indices closed at their lowest levels since September. The Hang Seng index fell 2.8% to 19,888.50, while the China Enterprises Index lost 3.9% to 8,505.16.
US light crude oil fell 47 sen to US$32.69 and Brent 51 cents lower at US$33.04. At Bursa Malaysia, Petronas Chemicals fell 35 sen to RM7.20 and erased 4.75 points from the KLCI. Petronas Gas was the top loser, down 54 sen to RM21.28 and wiped out 1.81 points while Petronas Dagangan lost 10 sen to RM23.90. SK Petrol lost five sen to RM1.80.
Petron Malaysia
was the second top gainer, up 67 sen to RM6.85 as investors were positive about its earnings outlook.
Tenaga lost 12 sen to RM13, MISC 10 sen to RM9.06 and Genting Bhd nine sen to RM7.25.
Crude palm oil for third-month delivery fell RM38 to RM2,300 per tonne, the lowest since Dec 18 last year. Genting Plantations lost 18 sen to RM10.30, KL Kepong and PPB Group 12 sen to RM22.80 and RM15.70 while Sime Darby lost eight sen to RM7.42. IOI Corp shed six sen to RM4.33.
Among the banks, CIMB fell the most, down 14 sen to RM4.15 and wiped out 2.02 points from the KLCI. RHB Cap 13 sen lower at RM5.43, Public Bank was down 12 sen to RM18.16, Hong Leong Bank 10 sen to RM12.98, AmBank seven sen to RM4.36 and Maybank two sen to RM8.32.
As for telcos, Axiata was down 10 sen to RM6.16, TM nine sen to RM6.54, Maxis two sen to RM6.63 and DiGi one sen to RM5.16 sen.
BAT was the only gainer among the KLCI stocks, up 80 sen to RM54.90.
MPI’s recent winning streak hit a speed bump as the market sentiment was more cautious, with the chip maker losting 37 sen to RM9.99 and the second worst performer of the day.
AWC ros e2.5 sen to 45 sen with 41.81 million shares after it secured a RM61.95mil contract for the plumbing works of the KL 118 Tower Project, which will be a mixed development.
Cycle & Carriage Bintang bucked the trend to add 20 sen to RM3.80 after posting record sales of Mercedes-Benz last year.
Among the key regional markets,
Japan was closed.
Hong Kong’s Hang Seng Index fell 2.76% to 19,888.50;
CSI 300 skidded 5.03% to 3,192.45;
Shanghai’s Composite Index fell 5.33% to 3,016.70;
Shenzhen Composite plunged 6.60% to 1,848.10;
Hang Seng China Enterprise was down 3.85% to 8,505.16;
Taiwan’s Taiex lost 1.34% to 7,788.42;
South Korea’s Kospi fell 1.19% to 1,894.84 and
Singapore’s Straits Times Index was down 1.53% to 2,709.04.
Spot gold lost US$4.35 to US$1,099.80.
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