KUALA LUMPUR: Sime Darby came under selling pressure in the afternoon session on Tuesday after the heavyweight plantations-property company announced its new share placement to raise RM2.37bil.
At 5pm, the KLCI was down eight points or 0.47% to 1,683.07. Turnover was 1.84 billion shares valued at RM1.73bil. The broader market was also weaker as decliners beat advancers 579 to 263 while 388 counters were unchanged.
Key Asian markets ended mostly lower as investors awaited signals from the US Fed about a possible rate hike later this year. Crude oil prices weakened and the ringgit lost ground against the key currencies.
Hong Kong shares were roughly flat on Tuesday as investors awaited clues on US monetary policies from the coming annual conference of the Federal Reserve, Reuters reported.
Oil fell below US$49 a barrel on Tuesday, giving up part of August's strong rally, as signs of rising supply outweighed hopes that producing nations will agree steps to support prices, it reported. US light crude oil fell 54 cents to US$46.87 and Brent was down 51 cents to US$48.65.
The ringgit weakened against the US dollar to 4.0282 from 4.0280 and slipped against the pound sterling to 5.3106 from 5.2896 and weakened against the Singapore dollar to 2.9838 from 2.9813. It edged lower against the Euro to 4.5640 from 4.5524.
At Bursa, Sime Darby fell 34 sen, the biggest decline in recent weeks, to close at RM7.80 and erased 3.66 points from the FBM KLCI on investor concerns the new shares to be placed out would dilute its earnings per share.
Sime Darby Bhd
plans to raise up to RM2.37bil from placing out 316.35 million new shares at RM7.51 sen as it seeks to reduce its borrowing and for capital expenditure and working capital.
As for telcos, Axiata fell 12 sen to RM5.66 and wiped out 1.82 points from the KLCI. Telekom was flat at RM6.81, Digi lost one sen to RM5 while Maxis climbed three sen to RM6.30.
Genting Malaysia and Genting Bhd fell nine sen each to RM4.28 and RM8.06. Tenaga rose two sen to RM14.82.
Among the banks. CIMB shed one sen to RM4.69 while RHB Bank, Hong Leong Bank and Public Bank were flat at RM5, RM13.16 and RM19.80 respectively. Maybank inched up one sen to RM7.53 while AmBank advanced four sen to RM4.46.
As for oil and gas stocks, SK Petro and Petronas Chemicals lost two sen each to RM1.58 and RM6.66, Petronas Dagangan lost six sen to RM23.34 but Petronas Gas added two sen to RM22.20.
Crude palm oil for third month delivery rose RM24 to RM2,567 per tonne. PPB Group was flat at Rm16.06, KL Kepong lost four sen to RM23.50 and PPB Group was flat at RM16.06.
Dutch Lady was the top loser of the day, down 48 sen to RM59.52, Ajinomoto lost 30 sen to RM14.04, Carlsberg fell 22 sen to RM14.98 and BAT was down 22 sen to RM14.98. Nestle rose 16 sen to RM78.92 and Heneiken added eight sen to RM18.62.
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