Published: Thursday June 21, 2012 MYT 12:54:00 PM
Updated: Thursday June 21, 2012 MYT 12:55:39 PM
Regional markets slip, KLCI's 4-day rally hits speed bump
By Joseph Chin
KUALA LUMPUR: Key regional markets fell in the morning session on Thursday on concerns about a weaker China economy and after the US Federal Reserve lowered its economic outlook.
However, the mood at Bursa Malaysia was still firm, with some mild profit taking seen after the four-day run-up which saw the FBM KLCI just two points away the historic closing high of 1,606 in April.
At midday, the FBM KLCI was down 2.35 points or 0.14% to 1,602.04, off the intra-morning high of 1,607.31. Turnover was 807.65 million shares valued at RM598.89mil. There were 270 gainers, 350 losers and 316 stocks unchanged.
Bloomberg reported Asian stocks outside Japan fell, with the regional benchmark index retreating from a one-month high, as a survey showed China's manufacturing may shrink for an eighth month and after the Federal Reserve cut its US growth estimate and expanded its Operation Twist programme.
Among the key regional markets, Japan's Nikkei 225 bucked the trend, adding 0.63% to 8,807.04.
Hong Kong's Hang Seng Index fell 0.93% to 19,336.25; Shanghai's Composite Index lost 1.55% to 2,257.38; South Korea's Kospi 1.24% lower at 1,880.53 and Taiwan's Taiex 0.84% lower at 7,272.97 while Singapore's Straits Times Index declined 0.78%to 2,833.44.
US light crude oil fell US$1.15 to US$80.30 and Brent 49 cents to US$92.20. Spot golf fell US$4.50 to US$1,603. Crude palm oil third-month futures fell RM48 to RM2,993.
At Bursa Malaysia, Pharmaniaga shed 46 sen to RM9.04. However, the share price had nearly doubled when it resumed trading last Friday. Its major shareholder, Boustead, shed seven sen to RM5.39.
Jaya Tiasa lost 31 sen to RM8.84 after posting weaker earnings but RHB Research Institute is maintaining its Outperform. It raised the fair value from RM8.55 to RM9.05 based on sum-of-parts.
Lustre and its warrants were in focus after the recent sale of shares held by banks which obtained them after the debt-to-equity conversion. Lustre jumped 4.5 sen to 13 sen and the warrants added 3.5 sen to 9.5 sen.
He was quoted saying on Wednesday he expected a profitable year as opposed to the loss-making year previously.