Written by Chong Jin Hun
Friday, 28 August 2009 12:56
KUALA LUMPUR: The Malaysian stock market barometer gave up earlier gains to settle at negative territory at midday, in tandem with a sell-off in regional markets. At 12.30pm, FBM KLCI was down 2.9 or 0.25% to 1,174.0.
Across the board, 168 stocks gained while 360 entities declined as investors traded 294.26 million shares worth RM456.36 million prior to the midday break. Most actively traded was newly-listed TAS Offshore Bhd which rose one sen to 91 sen with 53.8 million shares done.
"News of China considering to limit production in the steel and cement industries caused a small sell off in the regional markets. "Production curbs will affect resource-rich countries like Australia. However, such news of curbing is not new, it has being circulating for quite a while," SJ Securities wrote in a note today.
Among regional indices, China's Shanghai SE fell 2.45% to 2,874.27 while the Shenzen SE dropped 2.33% to 981.76 at midday break. Hang Seng was down 0.53% to 20,135.54 at 12.08pm, while Australia's S&P ASX 200 rose 0.48% to 4,472.10 at 12.23pm. Commodity prices rose. Crude oil for October at the New York Mercantile Exchange rose 18c to RM72.67 a barrel at 11.34am, spurred by a weakening US dollar amid optimism that the US economy is improving.
The world's largest economy shrank 1% in the second quarter, less than market estimates of a 1.5% contraction. Malaysian palm oil for October delivery added RM18 to RM2,395 a tonne at 11.44am. Palm oil prices tend to move in tandem with crude oil rates in anticipation that costlier hydrocarbon fuel would spur demand for palm oil as feedstock for biofuel production.
A more positive outlook for the US economy reduces demand for the US dollar, deemed a safe-haven asset in times of market uncertainty. The ringgit had traded at its strongest point of 3.5190 versus the US dollar at 8.26am today before weakening to 3.5260 at 11.46am. "The fundamental outlook is for the ringgit to appreciate," SJ Securities said.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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