Written by Surin Murugiah of theedgemalaysia.com
Thu Sep 20 2012 05:04:03 PM
KUALA LUMPUR (Sept 20): The FBM KLCI fell 1.2% on Thursday, in tandem with the slump at most global markets on the back of worrying economic data from China, Japan and France.
The FBM KLCI lost 20.52 points to 1,625.59. There were 551 losers and 184 gainers, while 312 counters traded unchanged. Volume was 899.29 million shares valued at RM1.46 billion.
Asian shares extended losses on Thursday after data indicated little respite for Chinese manufacturers, suggesting growth in the world’s second-largest economy slowed further in the third quarter, according to Reuters.
The MSCI’s broadest index of Asia-Pacific shares outside Japan extended losses to be down 0.7% on the day after the HSBC flash purchasing managers’ index was released. It had been down 0.5% before the data, it said.
Meanwhile, European shares and the euro fell on Thursday after weak Chinese and French data underlined worries about global economic growth, and a promise of extra oil from Saudi Arabia also helped to push crude prices to a six-week low, said Reuters.
Global shares have lost momentum this week with investors now taking stock after a nearly 17% rise in the MNSI world index since the start of June, it said.
At the regional markets, the Shanghai Composite Index lost 2.08% to 2,024.84; Hong Kong’s Hang Seng Index fell 1.2% to 20,590.92; Japan’s Nikkei 226 lost 1.57% to 9,086.98; South Korea’s Kospi was down 0.87% to 1,990.33; Taiwan’s Taiex lost 0.70% to 7,727.55; and Singapore’s Straits Times Index shed 0.34% to 3,065.16.
Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said that back to back disappointing data on Thursday affected investor sentiment badly.
He said the dip in the local market was due to foreign fund selling in tandem with the region.
“Equities, commodities and growth-focused currencies are in correction after bad economic data,” he said.
Nazri said the HSBC Flash China manufacturing Purchasing Managers’ Index (PMI) fell to a three-year low, Japan’s exports slid for the third month and French business activity in September fell at its fastest pace since April 2009.
“All point to a global economic slowdown,” he said.
Nazri said that Malaysia had one more negative uncertainty: “The political election [is] widely expected after the budget — another good reason investors [will] stay away,” he said.
Among the top losers on Bursa Malaysia were Petronas Dagangan, which fell 32 sen to RM21.80. Kotra dropped 28 sen to 70 sen; Tasek shrunk 26 sen to RM10.32; Aeon Credit and Genting deducted 22 sen each to RM10.36 and RM8.80 respectively; Panasonic and Dutch Lady decreased 20 sen each to RM22.30 and RM42.02 respectively; Genting Malaysia was down 19 sen to RM3.50; F&N retreated 18 sen to RM18.98; and Ajinomoto lost 17 sen to RM4.12.
The gainers included Aeon, RHB Capital, Mintye, Delloyd, GCE, Tecnic, MWE, MMHE and Iretex, while the actives included Perdana, Ingens, Asia EP, Astral Supreme, JCY, Maybank, Axiata, Scomi and AirAsia.