KUALA LUMPUR: The FBM KLCI slumped more than 1.2% at midday on Monday while key Asian markets posted even bigger declines during the first trading day of 2016.
At midday, the KLCI was down 20.52 points to 1,671.99 with 27 out of 30 of the KLCI component stocks down. Total turnover was 856.11 million shares valued at RM586.03 mil. The broader market was negative as decliners outnumbered advancers 471 losers to 293 gainers and 311 stocks unchanged.
Bloomberg reported that Asian stock markets slumped alongside emerging market currencies due to a worse than expected Chinese manufacturing report. The Shanghai Composite Index fell nearly 4% in intraday trading today in reaction to the news.
The Caixin factory index came in at 48.2 in December, a report showed Monday, missing estimates for a reading of 48.9.
Wire reports also said renewed tension in the Middle East prompted a strong rally in crude oil, while emerging market currencies fell.
The execution of a prominent Shiite cleric in Saudi Arabia on New Year’s Day increased geopolitical tensions across the Middle East. The Saudi embassy in Tehran, Iran was attacked by protesters over the weekend in reaction to the news.
Oil prices rose with Brent crude trading at US$38.24 per barrel while US crude was last traded at US$37.86.
The ringgit fell to its lowest point since Dec 18 and was last traded at 4.3278 to the US dollar in comparison to the 4.2933 on Dec 31.
At Bursa Malaysia, banks led the decline with Maybank, Hong Leong Bank, and CIMB each shaving off one point from the KLCI’s decline.
IHH Healthcare contributed a decline of 1.76 points after falling 13 sen to RM6.45. Astro lost nine sen to RM2.67 while
Among the banks, Hong Leong Bank fell 38 sen to RM13.06. Maybank fell 12 sen to RM8.28 while CIMB lost nine sen to RM4.45.
As for telcos, Digi fell 15 sen to RM5.25, TM 10 sen to RM6.68, Maxis fell nine sen to RM6.71 and Axiata seven sen to RM6.34.
Crude palm oil’s benchmark third-month contract for April delivery fell RM28 to RM2,499 per tonne.
Among the plantation companies in the KLCI, KL Kepong rose six sen to RM22.94 while PPB Group was flat at RM15.90.
Among the key regional markets:
Japan’s Nikkei 225 is down 2.57% to 18,544.85;
Hong Kong’s Hang Seng Index is down 2.31% to 21,409.20;
Shanghai Composite Index fell 3.94% to 3,399.91;
Taiwan’s Taiex fell 2.18% to 8,156.24;
South Korea’s Kospi fell 1.49% 1,932.03 and;
Singapore’s Straits Times Index is down 1.36% to 2,843.56 points.
Spot gold gained US$3.20 to US$1,064.30 per troy ounce.
