Asian Markets Continue to Slip
Filed Under (Market News) by Webmaster on 21-01-2009
Tagged Under : asian, falls, market, stock
Asian markets extended their decline on Wednesday, weighed down by the overnight fall on Wall Street on concerns about the health of financial firms.
At 9.30am, the KL Composite Index had fallen 7.25 points to 873.12, with banks among the losers except Public Bank which posted record net profit for the financial year ended Dec 31, 2008.
Trading activity was lacklustre with turnover at 44.2 million shares valued at RM37.77mil. There were 28 gainers, 178 losers and 72 counters unchanged.
Light crude oil jumped US$2.23 to US$38.74.
Among key Asian markets, Singapore’s Straits Times Index fell 2.44% or 42 points to 1,681 on expectations the economy would contract more than expected.
Japan’s Nikkei 225 fell 1.99% to 7,905.49 and Shanghai’s A Share Index decline 1.2% to 2,060.19.
HwangDBS Vickers Research said in a research note it expected the KLCI, which broke through 890 yesterday, would probably test the next support level of 860.
“In terms of news flows, amid a faltering external outlook, the expectation is that Bank Negara Malaysia will cut its overnight policy rate (OPR) either by 0.25% or 0.5% at its monetary policy committee meeting later today to stimulate economy activity,” it said.
HwangDBS Vickers Research said the government was working on a second stimulus package to assist businesses to weather through the crisis, including the possibility of lowering power tariffs.
DiGi was the top loser, down 30 sen to RM20.60, Brem-WA lost 27 sen to three sen, BAT 25 sen to RM43.75 while Kossan declined 16 sen to RM2.80.
Banks were among the top losers. Hong Leong Bank fell 20 sen to RM5.25, Eon Cap 18 sen to RM3.24, BCHB 15 sen to RM6.05 and HLFG 14 sen to RM4.30. Bursa lost 15 sen to RM5.20.
Public Bank rose 20 sen to RM8.90 after it announced, for the first time, a share dividend at a ratio of 1 for 35 shares (equivalent to 33.7sen) on top of a 25 sen cash dividend. Public Bak foreign added five sen to RM8.70.
Johor Land added nine sen to RM1.02, Kencana five sen to RM1.44, Petronas Gas give sen to RM9.80.
