Business

KL shares sag on US Fed fears

June 13, 2013

KUALA LUMPUR, June 13 — Continued weak sentiment across global equity markets amid jitters over the US Federal Reserve's bond-buying programme influenced Bursa Malaysia to trade in negative territory at mid-morning, dealers said.

At 11.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) stood at 1,752.79, down 22.33 points, with losses mostly seen in key heavyweight counters like Maybank, Genting, Sime Darby and Petronas Gas.

The barometer index recorded an intra-day low of 1,751 with an intra-day high registered at 1,774.52. RHB Treasury said the sharp decline in world equity markets was due to persistent worries over how soon central banks begin to scale back supportive measures.

The Bank of Japan's decision on Tuesday to leave its policies unchanged spooked investors already worried the Federal Reserve will soon curb its bond-buying programme, it said in a note.

Meanwhile, Prime Minister Datuk Seri Najib Razak earlier announced the introduction of multiple entry visas for up to five years to qualified business investors and fund managers to visit Malaysia.

With many projects introduced under the country's transformation programme, this action was anticipated as an “open door” move to woo more investments into Malaysia.

On the scoreboard, the Finance Index dropped 203.78 points to 16,695.14, the Plantation Index declined 88.78 points to 8,280.27 and the Industrial Index trimmed 49.13 points to 2,966.82.

The FBM Emas Index lost 156.35 points to 12,210.84, the FBMT100 erased 148.87 points to 11,969.34, the FBM 70 Index fell 160.81 points to 14,098.53, and the FBM ACE Index decreased 63.36 points to 4,689.76.

Market breadth was negative with losers outpacing gainers 649 to 77, with 175 counters unchanged, 690 untraded and 22 others suspended.

Turnover stood at 894.558 million shares worth RM724.239 million.

Among actives, both Eti Tech Corp and MAS shed half-a-sen each to 10.5 sen and 30.5 sen respectively, Malton slipped 3.5 sen to 90.5 sen while Luster Industries was flat at 20.5 sen.

For the heavyweights, Maybank lost 20 sen to RM10.26, CIMB eased five sen to RM8.15, Sime Darby fell 21 sen to RM9.37, Axiata Group gave up 11 sen to RM6.49 and Petronas Chemicals erased eight sen to RM6.47. — Bernama

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