Banks, telcos send KLCI to January 2017 low

Genting slumped 15 sen to RM6.80 and erased 1.01 points while GentingM was down three sen to RM3.25 following the recent corporate news which were viewed as negative by investors.

KUALA LUMPUR: Banks and telcos dragged the FBM KLCI deeper into the red at the close on Monday, as foreign selling on Bursa Malaysia stretched into the 34th day while most key Asian markets lost ground over the rising US-China trade war tensions.

At 5pm, the KLCI was down 16.05 points or 0.95% to 1,678.10 – the lowest since January 2017. Turnover declined to 2.04 billion shares valued at RM1.97bil. There were 298 gainers, 520 losers and 406 counters unchanged.

The ringgit weakened against the US dollar by 0.38% to 4.0175, rose 0.03% versus the pound sterling to 5.3194 but declined 0.37% to 4.6834. It rose 0.02% to the Singapore dollar to 2.9484.

On the external front, world shares fell, dented by worries over a worsening trade dispute between the US and other major economies, while oil prices gave up some of the gains made after major exporters agreed a modest production increase, Reuters reported . 

Hong Kong stocks fell to a six-month low, dragged by tech shares as the US plans limits on Chinese investment in US technology firms,. The Hang Seng index fell 1.3%, to 28,961.39, while the China Enterprises Index lost 1.2%, to 11,208.90. 

Bursa Malaysia has come under heavy selling pressure. MIDF Research said the net amount offloaded by foreign investors last week stood above the RM1bil level for the fifth time this year at RM1.89bil net.

CIMB fell 41 sen to RM5.40 and erased 6.83 points from the KLCI. This was the lowest since April 2017. Maybank fell 11 sen to RM9.08 and wiped out 2.14 points, Public Bank lost 20 sen to RM22.72 and RHB Bank 12 sen lower at RM5.53.

As for telcos, Axiata lost 20 sen to RM4.06 and erased 3.22 points, Digi lost 10 sen to RM4.27, Telekom eight sen to RM3.13 but Maxis gained six sen to RM5.56.

Earlier, Fitch Ratings revised Telekom's outlook to negative from stable due to its weakening credit profile, driven by pressure on earnings before interest, tax, depreciation and amortisation.

Among the consumer stocks, BAT fell the most, down RM1.02 to RM34.10, Heineken lost 38 sen to RM21.40 while F&N rose 30 sen to RM38.90 and Ajinomoto gained 22 sen to RM22.40.

Magni-Tech and SCGM skidded on weaker-than-expected financial results. Magni lost 65 sen to RM4.45 and SCGM 34 sen lower at RM1.47.

US light crude oil rose 24 cents to US$68.82 but Brent fell 79 cents to US$74.76.  Petronas Gas fell 22 sen to RM17.14 but Petronas Dagangan gained 12 se to RM24.40 and Petronas Chemicals eked out a four sen gain to RM8.44. Dialog was flat at RM3.14.

Sapura Energy was the most active, up one sen to 195 million shares done.

Crude palm oil for third month delivery rose RM2 to RM2,286 per tonne. KL Kepong rose 34 sen to RM23.98, PPB Group added 28 sen to RM19.64, Batu Kawan 24 sen to RM17.98 but IOI Corp shed one sen to RM4.58.

Sime Plantation rose seven sen to RM5.35 and Simre Darby two sen higher at RM2.44 while Sime Property added four sen to RM1.20.

KESM rose 18 sen to RM16.68 while Mi Equipment, which was listed on the Main Market last week, rose 12 sen to RM1.67.

Power giant Tenaga gained six sen to RM13.86, Genting Bhd fell nine sen to RM8.45 and Genting Malaysia five sen lower at RM4.88.