FBM KLCI, regional markets fall at midday

KUALA LUMPUR: In line with regional market weakness, FBM KLCI dropped 3.23 points or 0.26% to 1,256.77 at midday close Monday, Dec 14.

Top lagging heavyweights include IOI Corp, down 5 sen to RM5.35, MISC down 13 sen to RM8.61 and Maybank dropped 3 sen to RM6.73. Top leading heavyweights were KLK up 16 sen to RM15.72, Axiata up 1 sen to RM3.03 and Genting Malaysia up 1 sen to RM2.81.

HwangDBS Vickers said in its morning report that "From a technical perspective, there is a chance for the benchmark index to grind its way up amid a quiet market. On the chart, selective buying may lift the FBM KLCI to test the immediate resistence hurdle of 1,280 ahead."

The broker pointed out that FBM KLCI was rising from a trough of 1,255.76 on Wednesday, before finishing the week at 1,260.00 down 10.2 points or 0.8% from two Fridays ago.

Meanwhile, Asian stocks were falling led by banks and commodity counters as crude oil prices fall, and Japan's Tankan Index, a business confidence indicator showed companies scaling back on investment plans.

The Bank of Japan announced Sunday that the Tankan Index stood at -24 points. A negative figure indicates that negative sentiment outnumbered positive sentiment in the survey of large manufacturers including automakers and electronic giants.

Nymex crude oil price for one-month delivery continued to fall after crossing below the US$70 per barrel on Friday. At 12.30pm Malaysian time, the energy commodity stood at US$69.21 per barrel down 66 cents for the day and far below its recent high of US$81.37 per barrel on Oct 21, 2009.

Japan's Nikkei 225 fell 0.29% to 10,078.65 at the Malaysian midday close led by drops in Mitsubishi UFH Financial Group Inc, the country's largest bank by value, as well as Obayashi Corp that reportedly holds a portion of US$7.5 billion of bills owed by the Dubai government.

China's Shanghai Composite Index fell 1.94% to 3,184.34 points, led by financial companies, as investors speculate the new share sales will draw funds away from existing equities, Bloomberg reported.

In other key markets, Hong Kong's Hang Seng Index is marginally up 0.09% to 21,921.85 and Singapore's Straits Times Index is marginally down 0.04% to 2,799.67 at 12.30pm Malaysian time.