KUALA LUMPUR: Share prices on Bursa Malaysia remained in the red at the end of trade yesterday on foreign selling as investors reduced their holdings amid the worsening European debt crisis, dealers said.
As at 5pm, the FTSE Bursa Malaysia KLCI dropped 17.81 points or 1.245 per cent to close at 1,413.12, with losses mostly seen in selected heavyweights.
The market barometer, which opened 1.18 points higher at 1,432.11, moved between the 1,411.8 and 1,433.81 points range during trade yesterday.
Jupiter Securities Head of research Pong Teng Siew said if the market failed to hold at the support level of 1,390 to 1,395 level, there were chances for a further fall in the local bourse.
“The sell-down was led by foreign selling, which seemed to be a reaction to the unfolding European sovereign debt crisis.
“Unfortunately, this time, it will stay for quite sometime and it will be difficult to see the end of it,” he told Bernama here yesterday.
About US$1.2 billion foreign funds were taken out from Malaysia in August as foreign investors fled to safe-haven assets like the US dollar, he said.
Pong said there were even rumours in the market saying that Greece might default on its sovereign debt in few days as it might be unable to pay off two “sizeable” government bonds which are likely to be maturing in a couple of days.
He said even though the Greek government bonds which are maturing this year are worth euros 28 billion, even less than the amount of next year of euros 35 billion, the government will face difficulty in paying unless it gets bailed out by its fellow European members.
Apart from that, he said the market was also anticipating further stimulus packages from the US Federal Reserves under the third quantitative easing package (QE3) tomorrow which could help lift the market.
Bursa Malaysia’s Finance Index fell 142.05 points to 13,195.74, the Plantation Index slipped 4.41 points to 7,211.83 and the Industrial Index dropped 77.88 points to 2,565.22.
The FBM Emas Index lost 113.6 points to 9,626.73, the FBM70 Index dipped 110.03 points to 10,339.22 and the FBM Ace was down by 51.8 points to 3,697.69.
Losers outnumbered gainers by 496 to 218 while 233 counters were unchanged, 538 untraded and 26 others suspended.
Total market volume eased to 724.373 million shares worth RM1.352 billion from 729.269 million shares valued at RM1.529 billion last Thursday. There was no trading last Friday due to the Malaysia Day celebration.
Volume on the Main Market rose to 570.926 million units worth RM1.33 billion from Thursday’s close of 569.655 million shares valued at RM1.507 billion.
Turnover on the ACE market slipped to 90.637 million shares valued at RM13.117 million from 91.105 million worth RM13.344 million previously.
Warrants dropped to 57.957 million units valued at RM3.475 million from 62.783 million units valued at RM4.434 million on Thursday.
Leading the losers were DiGi.com, which fell RM1.46 to RM30.50, followed by Petronas Gas which erased 96 sen to RM13.72 and British American Tobacco which dipped 44 sen to RM43.76.
Among actives, Takaso Resources shed 3.5 sen to 16 sen, Sime Darby lost 30 sen to RM7.70 while Eastern & Oriental added two sen to RM1.56.
As for heavyweights, Maybank eased four sen to RM8.55, CIMB slipped eight sen to RM6.90 and Petronas Chemicals went down 11 sen to RM6.05.
Consumer products accounted for 80.764 million shares traded on the Main Market, industrial products 62.521 million, construction 36.819 million, trade and services 183.525 million, technology 18.635 million, infrastructure 20.291 million, finance 47.128 million, hotels 223,000, properties 87.813 million, plantation 20.834 million, mining 5,000, REITs 3.077 million and closed/fund 43,000. — Bernama