Asian markets extend losses, Japan worst hit

KUALA LUMPUR: Asian markets extended their losses at midday on Jan 21, registering losses of 0.66% to 2.8% as investors were unconvinced the US government’s US$140 billion stimulus package could prevent the US from heading into a recession.
At 12.30pm, the KLCI was down 9.57 points, or 0.66%, to 1,429.92 points. The FBM Emas lost 71.8 points to 9,717.57 points, while the FBM Second Board lost 115 points to 6,573.95 points.
Turnover was 296.5 million shares valued at RM606 million. Losers overwhelmed gainers six to one. There were 100 advancers, 599 decliners while 216 counters were unchanged.
Among Asian markets, Japan’s Nikkei 225 was the worst hit, falling 2.79% or 387.14 points to 13,474.15 points, Hong Kong’s Hang Seng Index fell 2.57% to 24,554.52 points, while Shanghai’s A Share Index lost 2.32% to 5,310.65. Singapore’s Straits Times Index fell 1.58% to 3,055.16 points.
The ringgit was quoted at RM3.2715 to the US dollar.
Light crude oil for February delivery was trading at US$90.87.
Crude palm oil futures fell RM25 to RM3,300 for February while for April, it lost RM7 to RM3,300.
Aseambankers Equity Research said renewed selling pressure could extend on increasing profit taking activities as indicators were showing exhaustion trends.
“Failing to stay above the 1,420 point level could see the KLCI revisiting the 1,400 point psychological support level,” it said. It added plantations and oil & gas counters could stage technical rebounds, but volatility in the broader market would cap gains.
Among the heavyweights, Tenaga fell 15 sen to RM9.45, Maybank lost 10 sen to RM12 but Telekom rose 10 sen to RM12.40.
IOI Properties was the top loser, down 50 sen to RM12.90 while Kulim-WB lost 35 sen to RM5.75. BCHB, Bursa and Parkson lost 30 sen each to RM10.80, RM14 and RM8 respectively.
Satang Jaya fell 21 sen to 49.5 sen. The Edge weekly reported that the Securities Commission was looking into allegations the company may have overstated its reported earnings.
Resorts was the most active with 7.7 million shares. It fell four sen to RM3.74.
Rexit, which will process Sompo Japan’s insurance business electronically, was the top gainer. It rose 26 sen to RM2.56.
Public Bank which will announce its full year results this evening, rose 20 sen to RM12.60. LPI added 20 sen to RM12.60. Malayan Flour added 10 sen to RM3 and Landmarks gained seven sen to RM3.-www.theedgedaily.com