FBM KLCI tracks decline in global markets

KUALA LUMPUR: The Malaysian equities barometer continued its decline until the midday break, closing 8.82 points lower to 1,255.69 amid losses across Asian and US stockmarkets.

Analysts foresee a long and protracted local market downturn after a 10-month rise due to the FBM KLCI’s run-up from the March 2009 low of 836.51. They expect the Malaysian equity gauge to move in line with the poorer performance across US and Asian stock markets.

"The market would be selling on any and every rebound rally that emerges from now on. Price turbulence to the downside would be the obvious market pattern for the next few months. Sell and step aside," Maybank Investment Bank Bhd head of retail research Lee Cheng Hooi wrote in a note to clients today.

Across Bursa Malaysia, there were 418 declining stocks versus 180 rising entities. A total of 482.82 million shares worth RM616.68 million changed hands.

Shares of LCL Corp Bhd, the most actively traded, rose 5 sen to 25 sen while top gainer Perusahaan Sadur Timah Malaysia (Perstima) Bhd added 23 sen to RM3.75. Biggest decliner BAT lost six sen to RM42.36.

Global stock markets were hit by negative sentiments amid concerns about the impact from China policymakers' move to curb lending and the health of the US economy. This prompted investors to snap up the US dollar and yen, deemed safe haven assets in times of market uncertainty.

Close to noon today, major decliners among Asian equity indices include Australia's S&P/ASX 200 which lost 1.54% to 4,601.10, South Korea's Kospi which declined 1.63% to 1615.63, and Japan's Nikkei 225 which was down 1.13% to 10,296.20.

The ringgit, meanwhile, weakened to 3.4130 against a strengthening US dollar.

US equities fell a night earlier, dragged down by shares of TECHNOLOGY [] companies. The Dow Jones Industrial Average declined 1.13% to 10,120.46, Nasdaq fell 1.19% to 2,179.00 while S&P 500 was down 1.28% to 1,084.53.