KLCI extends losses for fourth day, broader market weaker

KUALA LUMPUR: Blue chips on Bursa Malaysia extended their losses for the fourth day, sending the FBM KLCI below the 1,530 level again on Wednesday, May 4 as investors decided to keep out of the riskier equities, in line with key regional markets.

Investors were also cautious ahead of the Bank Negara Malaysia meeting on Thursday. Economists don’t expect the central bank to raise the overnight policy rate, which has been maintained at 2.75% since last July. However, they expect the statutory reserve requirement to be raised by another 100 basis points to 3%.

The cautious sentiment was also reflected in the key regional markets. Reuters reports China's stocks fell to a two-month low on Wednesday as investors dumped commodity-related sectors for a sixth straight session, but Hong Kong stocks closed above key chart support, suggesting the market's decline will not accelerate in coming days.

At Bursa Malaysia, the KLCI fell 3.04 points or 0.2% to 1,528.43. Turnover was 1.2 billion shares valued at RM1.51 billion. The broader market signaled the weakening sentiment, with 653 losers to 163 gainers.

Meanwhile, the Shanghai Composite Index fell 2.26% to 2,866.02 while the Hang Seng Index shed 1.35% to 23,315.24 while Singapore’s STI lost 1.26% to 3,113.76.

Crude palm oil third month futures fell RM7 to RM3.250 while light crude oil shed 10 cents to US$110.95. The ringgit was weaker against the US dollar at 2.9755 versus the previous close of 2.9700.

At Bursa, GENTING BHD []’s fall of 12 sen to RM11.30 dragged the KLCI down by 1.05 points while Maybank’s decline of six sen to RM8.66 pushed the index down by another 1.04 points.

HL Bank fell 12 sen to RM10.30, Petronas Dagangan 14 sen to RM15.16, Maybank six sen to RM8.66, Axiata and Petronas Chemicals four sen each to RM4.89 and RM7.18.

TAHPS was the top loser, down 27 sen to RM4.60 while Nestle gave ip 20 sen to RM48.20, Tradewinds 19 sen to RM7.92, Coastal Contracts 16 sen to RM3.36 and Puncak 14 sen to RM2.

Ramunia-WA was the most active with 72.5 million units done, down six sen to 41 sen while the shares gave up eight sen to 56 sen. Fitters lost nine sen to 98 sen

Low-profile counter, The Store was the top gainer, up 50 sen to RM3 with3,000 shares done. MAA was in play again, jumping 22 sen to RM1.32.

Among mid-cap stocks, Genting PLANTATION []s rose 14 sen to RM8.14 and Tan Chong 11 sen to RM4.65.(theedgemalaysia.com)