KL stock market sharply lower

BURSA Malaysia closed sharply lower yesterday on heavy selling in most heavyweights, particularly the plantations-related ones, dealers said.

The benchmark Kuala Lumpur Composite Index (KLCI) fell 16.13 points, or 1.44 per cent, to close at 1,105.04 after opening 1.24 points, or 0.1 per cent, higher at 1,122.41.

The Plantation Index fell 452.28 points to 6,355.91 and the Industrial Index decreased 56.75 points to 2,345.08. The Finance Index, however, gained 1.61 points to 8,432.98.

The FBMEmas lost 101.57 points to 7,348.95, FBM30 declined 114.88 points to 7,107.37 and the FBMMesdaq went down 26.06 points to 4,192.21, but FBM2BRD gained 2.31 points to 5,307.07.

Losers outnumbered gainers by 370 to 194 while 241 counters were unchanged, 566 untraded and 38 suspended.

A dealer said the extended decline in oil prices, which closed US$5.31 lower at US$129.29 a barrel on Thursday, had sparked a sell-down in plantation stocks such as IOI Corp, Kuala Lumpur Kepong and Sime Darby, among others.

Analysts said Malaysian shares will likely post modest gains next week as bargain-hunters scout out discounted shares.

"Some bargain hunting can be seen," Phua Kwee Hock, an analyst with SJ Securities, said.

"Next week, the bourse may stabilise in line with declines in oil prices," he added.

Phua said trading would range between 1,100 to 1,126 points, adding that "since our bourse had been down for some time, we could see some bargain hunting".

Another dealer said the market sentiment yesterday was weak with some foreign funds pulling back their investments on uncertainty over the domestic interest rate and political issues.

"Overall, the market was on a roller-coaster ride in the morning amid limited buying interest, as most fund managers were cautious.

"Selling pressure continued in the afternoon. We may see more volatility and uncertainties next week," he added.

Among heavyweights, Sime Darby lost 35 sen to RM7.75 and Public Bank declined 10 sen to RM10.20. Maybank edged up five sen to RM7.15, Tenaga Nasional was flat at RM7.95 and Bumiputra-Commerce added 15 sen to RM7.70.

Meanwhile, KLCI futures contracts ended lower on heavy selling in line with the downtrend on the cash market, dealers said.

Both July and December contract months dropped 18.0 points each to 1,095.0. - Bernama, AFP