KL shares fall for 3rd day

 

MALAYSIAN shares closed 1.4 per cent lower today on sharp overnight decline in US stocks and weaker regional markets, dealers said.

The benchmark Kuala Lumpur Composite Index fell for a third day, losing 12.33 points to close at 865.32, its lowest level since October 31.

Seven stocks fell for each that climbed on the 100-member measure. November index futures dropped 1.6 percent to 854.50.

The main index was tipped to move in a range of 850-880 tomorrow.

“Selling pressure came from retail investors while some local funds took the opportunity to bargain hunt on weakness,” one dealer said.

“However, the weaker ringgit encouraged investors to sell off foreign-fund favoured stocks,” he added.

Proton Holdings Bhd, a state-controlled automaker, fell 4 sen, or 2.3 per cent, to RM1.69, its lowest close since March 1992. Tan Chong Motor Holdings Bhd declined 6 sen, or 5.3 per cent, to RM1.08, the lowest since April 2003. Malaysia’s vehicle sales fell 13 per cent in October from a year earlier, as demand slumped amid the global economic slowdown, the Malaysian Automotive Association said.

IOI Corp, Malaysia’s second-biggest palm oil producer, lost 14 sen, or 4.6 per cent, to RM2.94, the lowest close since October 31. Kuala Lumpur Kepong Bhd slid 5 sen, or 0.6 per cent, to RM8.10. Sime Darby Bhd lost 10 sen, or 1.6 per cent, to RM6.30. Palm oil futures in Malaysia fell as much as 3.5 per cent today, set for its biggest decline in a week, amid a slide in crude oil.

Idaman Unggul Bhd slid 0.5 sen, or 10 per cent, to 4.5 sen, its steepest decline since October 29. The Malaysian insurer said Allianz General Insurance Malaysia Bhd has scrapped talks to buy a stake in Idaman’s Tahan Insurance Malaysia Bhd unit.

Malaysian Bulk Carriers Bhd dropped 6 sen, or 2.6 per cent, to RM2.25, the lowest level since October 29. The vessel operator said earnings for the fourth quarter will “not be good” because of the weak shipping market.