FBM KLCI close flat

SHARE prices on Bursa Malaysia ended lower following the overnight slump on Wall Street, but managed to recover some earlier losses with eleventh hour buying in selective index-linked counters, said a dealer.At 5pm, the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI), shed 0.89 of a point to 1,065.47 after opening 6.03 points lower at 1,060.33. It had touched an intra-day low of 1,058.12.The absence of any fresh lead on the local and regional fronts was another factor causing the market to remain bearish, said the dealer.

"Sentiments in Wall Street were hammered by the slumping crude oil price that dragged the stock prices lower," said MIMB Investment in its research note.Investors have been worried that the global economic recovery may take longer than expected and this may inevitably dent demand for crude oil.They became more cautious when US President Barrack Obama's economic adviser Laura Tyson said a second round of stimulus might be needed to boost the the country's economy, MIMB Investment said.

At the local stock exchange, the Plantation Index ended 47.20 points down at 5,281.82, the Industrial Index slipped 2.31 points to 2,369.59, the Finance Index added 13.28 points to 8,531.27 and the FBMEmas Index dropped 9.36 points to 7,162.89.

The FBM Top 100 inched down 7.86 points to 6,980.53, the FBM70 slipped 15.85 points to 7,045.32, the FBMMesdaq Index fell 9.93 points to 3,878.05 and the FBM2BRD Index was 1.25 points lower at 4,671.84.

Decliners outnumbered advancers by 335 to 188 while 228 counters were unchanged, 481 untraded and 34 others suspended. Total volume rose to 672.18 million shares worth RM1.17 billion from 586.2 million shares worth RM752.8 million today. IOI Corp, Malaysia’s second-biggest palm-oil producer, slipped 1.3 per cent to RM4.60, its lowest close since June 23. Unico-Desa Plantations Bhd slid 4.1 per cent to 70 sen. Kuala Lumpur Kepong Bhd lost 0.8 per cent to RM11.80, the lowest since June 4.

Palm oil futures in Malaysia dropped below RM2,000 for the first time since March 31 on concern a seasonal increase in production in the second half would swell stockpiles and damp prices of the vegetable oil. Palm oil for September delivery on the Malaysia Derivatives Exchange slipped as much as 4.1 per cent to RM1,984 a metric ton. It was at RM1,996 at 4.21 pm local time.

KNM Group Bhd, the country’s biggest listed oil and gas services provider, dropped 3.3 per cent to 73.5 sen, its lowest close since May 8. Crude oil fell, poised for the longest losing streak since December, as equities slumped and an industry report showed an increase in US fuel inventories.Mitrajaya Holdings Bhd, a Malaysian builder, jumped 10 per cent to 53 sen, its highest close since October 10. The company said it won a contract valued at RM63.6 million for construction work at the Newcastle University Medicine Malaysia campus in Johor. The 20-month contract should be completed by March 2011, Mitrajaya said in a statemen