Bursa shares close lower amid sell-off

July 24, 2012

KUALA LUMPUR, July 24 – Share prices on Bursa Malaysia closed lower on continued selling amid a lack of any major catalyst to move up the market, dealers said.

At close, the underlying FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 3.6 points or 0.22 per cent to 1,632.57.

The benchmark index, which opened at 1,638.05, hovered between 1,629.18 and 1,639.71 throughout the day.

Industrial, consumer and technology were the only sectors that recorded gains during the morning session, while the palm oil plantation sector, the biggest loser, fell 0.32 per cent.

Dealers said the sell-off came on investor concern over the ongoing eurozone debt crisis resurfacing amid indications that Spain might require a full bailout.

The selling spree remained mild compared with regional markets due to FBM KLCI’s defensive traits and local funds’ support ahead of the IHH Healthcare Bhd listing tomorrow, Hong Leong Investment Bank Research said.

Meanwhile, HwangDBS Vickers Research Sdn Bhd said the market moved in line with the weak Wall Street performance overnight, which fell between 0.8 per cent and 1.2 per cent.

“Sentiment could also be hit by a wobbly external backdrop amid rising fears that the eurozone debt crisis would deepen,” the research house said.

The Finance Index declined 12.561 points to 14,657.88, the Plantation Index fell 20.09 points to 8,779.97 and the Industrial Index was 3.02 points higher at 2,870.32.

The FBM Emas Index went down 17.54 points to 11,175.64, the FBMT100 decreased 18.45 points to 10,995.14 and the FBM Ace Index was 5.68 points higher at 4,285.48.

Decliners led advancers by 413 to 294 while 351 counters closed unchanged, 535 untraded and 14 others suspended.

Total volume fell to 845.75 million shares valued at RM1.51 billion from 915.89 million shares worth RM1.22 billion yesterday. – Bernama