Published: Thursday July 12, 2012 MYT 1:07:00 PM
Asian markets slump at midday, Genting weighs
By Joseph Chin
KUALA LUMPUR: Key Asian markets fell on Thursday, posting losses of up to 1.6% on worries about a global economic slowdown, while at Bursa Malaysia, losses in Genting Bhd and Tenaga dragged the key index into the red.
At 12.30pm, the FBM KLCI was down 1.39 points or 0.1% to 1,628.06. Turnover was 696.57 million shares done valued at RM663.31mil. The broader market turned more cautious with declining counters beating advancers 406 to 255 while 300 stocks were unchanged.
Bloomberg reported Asian stocks fell for a sixth day as South Korea unexpectedly cut interest rates and Australia's jobless rate rose, adding to concern the global economic slowdown is deepening. The won and the Australian dollar slid.
Among the key regional markets, Japan's Nikkei 225 fell 1.26% to 8,739.40; Hong Kong's Hang Seng Index 1.6% lower at 19,109.76; Shanghai's Composite Index 0.28% lower at 2,169.35; Taiwan's Taiex 1.52% to 7,147.56; South Korea's Kospi 1.17% to 1,805.04 and Singapore's Straits Times Index 0.35% lower at 2,978.93.
US light crude oil fell 28 cents to US$85.53; Brent 27 cents to US$99.96 and spot gold US$5.67 lower to 1,570.70.
The ringgit weakened against the US dollar to 3.1848.
At Bursa Malaysia, Genting Bhd was the top loser, down 15 sen to RM9.65, dragging the KLCI down 1.30 points.
A Singapore newspaper, Today, reported that a Casino Regulatory Authority (CRA) probe against Resorts World Sentosa (RWS) was underway over alleged reimbursements of casino entry levies. The investigation, which started almost a year ago, is understood to allegedly involve hundreds of incidences of these illegal reimbursements, said the report.
Tenaga fell nine sen to RM6.56, erasing 1.16points from the KLCI while YTL Cortp'd six sen decline to RM1.88, shaved off 1.04 points from the index.
Crude palm oil for third-month futures fell RM75 to RM3,007 but plantation stocks still displayed resilience. TDM fell 11 sen to RM4.64, FGV 10 sen to RM5.40 and IOI Corp lost two sen to RM5.26 but KLK added two sen to RM24.16. Jaya Tiasa fell 16 sen to RM8.83 the second day of decline after it announced plans to raise about RM332mil from a share placement exercise which could lead to a dilution in earnings.
Naim Indah Corp was the most active with 89.69 million shares done. It rose three sen to 35.5 sen. Harvest added 7.5 sen to 62 sen and the warrants nine sen to 51.5 sen.
Takaful resumed its upward trend, adding 48 sen to RM6.40 while Pharmaniaga rose 42 sen to RM10.60. Hing Yap added 20 sen to RM1.88 after the company said it was acquiring six entities from Asia Brands Corp Bhd for RM245mil.