MISC SELLDOWN weighs on KLCI midday 12 May 2009

Asian markets were in the red at the midday break on May 12 as investors locked in some gains from the rally.

At Bursa Malaysia, MISC was the main drag on the 100-stock KL Composite Index after disappointing fourth quarter earnings. However, despite the weaker broader market, there was no heavy sell-down on key blue chips as reflected in the value of shares done.

At 12.30pm, the KL Composite Index was down 10.18 points or 0.99 % to 1,015.32. Turnover was 1.2 billion shares valued at RM805.66 million. The broader market was lower, with 517 losers, 114 losers and 155 unchanged. Asian markets fell, with Singapore’s Straits Times Index down 1.32% to 2,137.61, Japan’s Nikkei 225 shed 1.05% to 9,352.34 and Hong Kong’s Hang Seng Index fell 0.99% to 16,939.07.

Shanghai’s Composite Index rose 0.18% to 2,584.29. Chinese exports fell more steeply than expected in April, overshadowing strength in capital spending and casting fresh doubt on how solid the prospects for recovery are in the world's third-largest economy.

Reuters reported exports were down 22.6% last month from a year earlier, the government said on May 12. That was steeper than March's 17.1% decline and greater than the 18% drop that economists had expected.

After adjusting for the numbers of working days, the customs office said China exported 6.9 percent more in April than in March. But most economists said the figures were disappointing.

On the commodities front, crude palm oil futures rose RM28 to RM2,633 and light crude oil eased 18 cents to US$58.32.

MISC-F fell 35 sen to RM8.25 amd MISC 20 sen to RM8.30 after the disappointing fourth quarter results. BAT was the top loser, down 50 sen to RM42.50, PPB and Tanjong 20 sen lower at RM10.60 and RM13.80 and Bursa 15 sen to RM7.15.

Pharmaniaga fell 30 sen to RM4.20 and MSC 18 sen to RM2.94. Olympia-LA fell 29 sen to 26 sen. Compugates was the most active with 140 million shares done, down 1.5 sen to 13.5 sen. Ramunia rose 1.5 sen to 66.5 sen and Ramunia-WA one sen higher to 41.5 sen.

Putrajaya Perdana was the top gainer, adding 14 sen to RM4.10. Glove maker Hartalega rose 12 sen to RM3.58, IJM seven sen to RM5.05 and BHIC six sen to RM3.34.