Published: Friday August 3, 2012 MYT 1:27:00 PM
Updated: Friday August 3, 2012 MYT 1:51:10 PM
Disappointment over ECB inaction drags markets into the red
By Joseph Chin
KUALA LUMPUR: Nearly all the key regional markets were in negative territory on Friday, with Japan the worst hit as its benchmark Nikkei 225 fell more than 1.2%, on growing discontent over the European Central Bank's perceived inaction to control the euro zone debt crisis.
At midday, the FBM KLCI fell 3.02 points to 1,630.43. Turnover was 492.17 million shares valued at RM546.97mil. There were 238 gainers, 365 losers and 315 counters unchanged.
Among the key regional markets, Japan's Nikkei 225 fell 1.22% to 8,547.94; Hong Kong's Hang Seng Index was 0.91% lower at 19,510.69; Taiwan's Taiex lost 0.94% to 7,199.98; South Korea's Kospi lost 1.07% to 1,849.41 and Singapore's Straits Times Index shed 0.13% to 3,032.35. Shanghai's Composite Index rose 0.4% to 2,119.58.
Bloomberg reported the yen strengthened and the cost of insuring bonds rose after central banks in Europe, China and the US this week failed to deliver immediate measures to boost a slowing global economy. Sharp Corp. plunged after widening its loss forecast.
US light crude oil rose 44 cents to US$87.57 and Brent 45 cents higher at US$106.35 while spot gold advanced US$1.88 to US$1,589.93.
The ringgit was weaker against the US dollar at 3.1350.
Crude palm oil for third-month futures fell RM23 to RM2,923.
MMHE fell to the lowest since mid-June after its disappointing financial results. OSK Research said MMHE's first half results were below expectations due to the lack of new and high margin contracts from Petronas and its PSC contractors.
Patimas was flat at 3.5 sen and it was the most active with 64.87 million shares done.
Oriental Holdings rose 18 sen to RM7.72. CIMB Equities Research said Oriental the company was way ahead of the curve in investing overseas before it became a major investment theme for Malaysian corporates.
It raised Oriental's target price to RM10 based on 20% discount to RNAV which was the same discount it used on Malaysian conglomerates that generate low ROEs.