Monday October 6, 2008 MYT 11:41:56 AM

Asian markets fall on US economy worries

By JOSEPH CHIN

KUALA LUMPUR: Asian markets started the new week on a weak note on Monday, with the local bourse also slightly lower in cautious trade as investors worried about the deteriorating fundamentals of the world’s largest economy despite the Congress approval for the US$700bil bailout.

At 9.30am, the KL Composite Index was down 3.19 points to 1,013.51. Turnover was 28.99 million shares valued at RM55.28mil. There were 54 gainers, 112 losers and 80 counters unchanged.

Asian markets fell with Shanghai’s A Share Index opening, after a week-long break, to down 2.36% or nearly 60 points to 2,351.912.

Japan’s Nikkei 225 fell 3.5% to 10,554.95, Singapore’s Straits Times Index 2.4% lower to 2,242.09 while South Korea’s Kospi declined 3.54% to 1,369.45. Light crude oil fell US$2 to US$91.88 per barrel.

HwangDBS Vickers Research said despite showing resilience of late, we expect Malaysian stocks to drift downward ahead. It said the KLCI would probably back off from 1,020, which was the immediate resistance hurdle, although the KLCI might remain above the 1,000 threshold for the time being.

“This comes as investors’ focus in the US has shifted from the huge bailout package (which was finally passed by the lawmakers on Friday) to assessing the deteriorating fundamentals of the world’s largest economy. Reflecting the low confidence, major equity indices on Wall Street were down between 1.4% and 1.5% at the closing bell last Friday,” it said.

Plantation stocks fell, with Kulim down 30 sen to RM5.30, KL Kepong sliding 25 sen to RM8.80 and Tradewinds Plantations 11 sen to RM1.68 while United Plantations declined 10 sen to RM11.10 and Asiatic eight sen to RM4.40.

Puncak gave up part of its gains, down 14 sen to RM3.24 while Bursa, EON Cap and Tanjong fell 10 sen each to RM6.35, RM4 and RM13.40 respectively.

IOI Corp was the most active, down six sen to RM4.40. AirAsia rose three sen to RM1,.26 on news report that it could be privatised.

Kim Loong-WA rose 11 sen to 88 sen, Hai-O eight sen to RM3.54 while Hwa Tai added five sen to 50 sen.

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