Published: Monday September 24, 2012 MYT 5:45:00 PM
Updated: Monday September 24, 2012 MYT 5:52:25 PM
Banks drag KLCI into the red
By Joseph Chin
KUALA LUMPUR: Banks closed lower on Monday, capping off a weak day where the FBM KLCI fell below the critical 1,600 level in intra-day trade, as investors worried about the eurozone crisis.
The KLCI fell 11.32 points or 0.7% to close at 1,612.38. Turnover was 827.16 million shares valued at RM1.35bil. Declining stocks beat advancers 571 to 183 while 302 counters were unchanged.
Reuters reported European shares and the euro followed a broad range of riskier assets lower on Monday as investors refocused attention from central bank stimulus schemes to weak economic fundamentals and a new range of risks in the euro zone's debt crisis.
The wire report said German business sentiment dropped for a fifth successive month in September to its lowest level since early 2010, showing even the strongest of Europe's economies is succumbing to an economic downturn.
Among the key regional markets, Japan's Nikkei 225 fell 0.45% to 9,069.29; Hong Kong's Hang Seng Index lost 0.19% to 29,694.70 and Singapore's Straits Times Index gave up 0.33% to 3,067.93.
Shanghai's Composite Index rose 0.32% to 2,033.19; Taiwan's Taiex added 0.18% to 7,768.30 and South Korea's Kospi edged up 0.05% to 2,003.44.
US light crude oil tumbled US$1.32 to US$91.57 and Brent fell US$1.72 to US$109.70. Spot gold slipped US$14.33 to US$1,758.77.
The ringgit weakened against the US dollar to 3.0732 from 3.0498.
At Bursa Malaysia, consumer stocks were the main losers, with Nestle down 50 sen to RM60.50, GAB and BAT 24 sen each to RM15.40 and RM60.96.
F&N fell 48 sen to RM17.92. Its major shareholder Fraser and Neave Ltd's (F&N) request seeking a higher offer from a company linked to Thailand's third-richest man for all the shares of the drinks-and-property conglomerate was rejected by Singapore's takeover regulator, wire reports said.
Thai billionaire Charoen Sirivadhanabhakdi, through TCC Assets Ltd, launched a US$7.2 billion offer this month to buy out other shareholders of F&N at a price of S$8.88 a share.
Crude palm oil for third-month futures fell RM116 to RM,2647, the lowest since Sept 22, 2010.
Among the banks, Maybank fell 14 sen to RM9.01, dragging the KLCI down 2,56 points while Public Bank lost 10 sen to RM14.42 and erased 1.10 points from the index. CIMB fell nine sen to RM7.44 and pushed the KLCI down 1.56 points. HLFG was down 18 sen to RM11.82.
KrisAssets was the top gainer, up 25 sen to RM9.50, Shell 19 sen to RM8.69 and GWPLastic 6.5 sen to 91.5 sen.