KLCI ends Tuesday trade lower but off day low

The local bourse ended Tuesday’s trade down with the benchmark KLCI lower in tandem with the sell-offs in the region on concerns of a prolonged economic recession. The index lost 0.14% to 1,044.48. European markets were mixed in mid-morning trade with London’s FTSE 100 Index up 0.54% while Frankfurt’s Dax Index gained 0.87%.

Meanwhile, a gauge of the manufacturing and services industries of the euro-zone economies contracted at a slower pace to 44.4 this month compared to 44 in May.

This week, investor confidence was further dampened by the World Bank’s downward revision for its global growth forecast – to a 2.9% contraction from 1.7% contraction in March. It also lowered growth estimate for 2010 to 2%, down from 2.3% previously.

At Bursa Malaysia, 214 counters were up, 451 others were down while 204 others were traded unchanged. There were 1.37 billion shares done with a total value of RM1.52 billion.

Selling pressure was evident right from the word get go. The KL Composite Index fell by as much as 18 points in the earlier part of the day. Although the benchmark index managed to claw back most of its losses after the break, sentiment remained weak. Market breadth was negative throughout the day but improved slightly near the close.

Selling pressure was recorded across almost all sectors.

Bank stocks BCHB fell 30 sen to RM8.75, Public Bank lost 5 sen to RM8.75 while EON Capital shed 12 sen to RM4.70. AirAsia lost 3 sen to RM1.10 and MAS rose 12 sen to RM3.18. Among plantation stocks, Sime fell 10 sen to RM6.75 and IOI was down 2 sen to RM4.52.

Power stocks TNB gained 5 sen to RM7.40, Sawarak Energy lost 5 sen to RM1.98, MMC dropped 6 sen to RM1.85 and Petronas Gas was up 10 sen RM9.80. MISC-foreign rose 25 sen to RM8.75 while MISC gained 15 sen to RM8.70.

Samchem, which made its debut today on the local bourse rose 19 sen to 90 sen. Its shares opened at 69 sen against its initial public offering price of 71 sen.

Nymex crude oil fell 83 cents to US$66.67 per barrel.
Crude palm oil gained RM83 to RM2,240 per tonne.
The ringgit was quoted at 3.547 to the US dollar.