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Malaysia Market Watch 7th September 2012

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BURSA Malaysia closed sharply lower on pa-nic selling after Standard and Poor’s said it may cut Malaysia’s sovereign credit rating if the government did not deliver promised reforms to cut spending to reduce its fiscal deficits.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) lost 23.02 points to close at 1,617.99. It hovered between 1,613.16 and 1,635.95 throughout the day.

The downtrend was dragged by losses in heavyweights Axiata and CIMB which fell 20 sen each to RM6.02 and RM7.54 respectively.

Affin Investment Bank vice-president and head of retail research, Dr Nazri Khan, said Malaysia’s ranking slippage in the latest World Economic Forum’s Competitiveness Index 2012-2013 also gave investors the excuse to close bets and take profits ahead of the potential budget and local election.

The Finance Index lost 206.68 points to 14,500.27, Industrial Index fell 38.02 points to 2,805.74 and the Plantation Index eased 122.66 points to 8,400.10. The FBM Emas Index fell 156.81 points to 11,022.06, FBM 70 Index fell 169.49 points to 12,002.01 and the FBM ACE Index lost 79.72 points to 4,414.35.

Losers beat gainers by 739 to 157, while 241 counters were unchanged, 487 untraded and 25 others suspended.

As for heavyweights, Maybank declined 14 sen to RM9.00, Sime Darby lost three sen to RM9.76 and Maxis dipped 15 sen to RM6.80.

Meanwhile, FBM KLCI futures contract on Bursa Malaysia Derivatives closed lower in tandem with the downtrend in the cash market, dealers said.

September and December shed 23.5 points each to 1,611.50 and 1,610.50 respectively. October and March 2013 lost 22.5 points each to 1,612.5 and 1,608 respectively.

Turnover rose to 13,812 lots from Wednesday’s 7,760 lots while open interest increased to 45,999 contracts from 40,913 contracts. – Bernama (BTimes)