KUALA LUMPUR: Blue chips slumped early Wednesday, extending their decline from the previous day and casting a pall of gloom over the broader market as trading in November got underway while Ekovest and Iskandar Waterfront Holdings came under selling pressure.
At 9.12am, the FBM KLCI was down 0.35 of a point or 0.02% to 1,747.57. Turnover was 354.17 million shares valued at RM182.79mil. There were 163 gainers, 136 loser and 207 counters unchanged.
Asian shares looked set to extend their gains into a fourth straight day on Wednesday on the back of solid economic growth, while oil prices were on a bull run on hopes of an extension of output cuts by major oil producers, Reuters reported.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3% in early trade while Japan's Nikkei gained 1.0%.
Hong Leong Investment Bank (HLIB) Research said the KLCI could trend sideways over the near term moving into the month of reporting season, which investors will be focusing on earnings to firm up their investment decisions moving forward.
Also, positive trading activities may linger within oil and gas stocks as the Brent crude oil sustained above US$60 per barrel.
Brent crude oil prices were near two-year highs on Wednesday as OPEC has significantly improved compliance with its pledged supply cuts and Russia is also seen keeping to the deal.
Brent futures were at US$61.16 per barrel at 0045 GMT, up 22 cents, or 0.36 percent, since their last close. Brent is up almost 38% since its 2017 lows last June.
US West Texas Intermediate (WTI) crude was at US$54.65 a barrel, up 27 cents, or 0.5 percent, and close to February highs. It is up almost 30% since 2017 lows in June.
At Bursa Malaysia, KLCC was the top loser, down 20 sen to RM7.80, KL Kepong fell 18 sen to RM24.42, Kimlun 11 sen to RM2.20, Globetronics nine sen to RM6.50 and Sasbadi 4.5 sen lower at 79.5 sen.
Ekovest fell 19 sen to 97 sen with 99.41 million shares done, its call warrants CE tumbled 16 sen to seven sen and CD plunged five sen to four sen while the warrants lost 5.5 sen to 65 sen. IWCity lost five sen to RM1.35.
Tan Sri Lim Kang Hoo proposed a restructuring exercise for his listed companies by recommending that his construction and highway outfit Ekovest launch a takeover of his property company Iskandar Waterfront City Bhd
(IWC) at RM1.50 per share of the latter.
It has also been announced that Lim’s earlier plan of injecting his unlisted master developer company, Iskandar Waterfront Holdings Sdn Bhd (IWH), into IWC is being called off.
Press Metal advanced, up 35 sen to RM4.78 and its call warrants CZ added 16.5 sen tp 39 sen and WC added 15 sen to RM4.20.
Oriental Holdings and MAHB gained 13 sen each to RM6.68 and RM8.41.
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