KLCI falls to lowest since May but in thin volume

 Thursday September 6, 2012

KUALA LUMPUR: Just two days after the FBM KLCI hit a fresh record high albeit an overall lacklustre market, the 30-stock index fell to the lowest since May at midday on Thursday, on some mild fund selling of key stocks including telcos and banks.

At 12.30pm, the KLCI was down 23.80 points or 1.45% to 1,617.21. Turnover was 670.74 million shares valued at RM848.45mil. Losers battered gainers 681 to 75 while 224 counters were unchanged.

The KLCI was the worst performer among the key regional markets, but trading volume of the major decliners was relatively thin.

"The decline was not due to heavy selling but mainly the lack of buyers in the market," said the head of institutional dealing at a local bank-backed brokerage.

He said the market was already "toppish" and it was time for some profit taking.

Bloomberg reported oil rose and the euro approached a two-month high as investors awaited details of a European Central Bank plan to stem the region's debt crisis.

Light crude oil rose 61 cents to US$95.97 and Brent added 42 cents to US$113.51. Spot gold rose US$3.83 to US$1,69.75.

The ringgit was quoted at 3.1189 to the US dollar.

Palm oil fell for a third day to a three-week low on speculation that a bigger-than-estimated soybean crop in the US may boost global vegetable-oil supplies, and on concern that stockpiles in Southeast Asia are risingm wire reports said.

Crude palm oil for third-month futures fell RM54 to RM2,936 per tonne, which was a three-week low as investors worried stockpiles in Southeast Asia were rising, aggravated by higher soybean output from the US.

KL Kepong fell the most, down 64 sen to RM22.30 with 318,900 shares done,d dragging the KLCI down 1.06 points while PPB extended its losses, falling 46 sen to RM12.82 with 257,200 shares transacted. Batu Kawan lost 36 sen to RM18.70.

The biggest drag on the KLCI was CIMB, which fell 20 sen to RM7.54 and pushed the index down 3.47 points. HL Bank lost 12 sen to RM13.32.

Among the telcos, Axiata fell 16 sen to RM6.06, dragging the KLCI down 3.15 points. Maxis fell 19 sen to RM6.76 and TM lost 16 sen to RM5.98.

Petronas Dagangan fell 58 sen to RM21.30, Petronas Gas lost 44 sen to RM18.74 while Genting Bhd gave up 18 sen to RM8.76.

BAT was the top gainer, up 90 sen to RM63.90, Axis REIT added seven sen to RM2.98 while Petra Energy gained six sen to RM1.86.