FBM KLCI down; plantations fell on lower CPO prices

The FTSE Bursa Malaysia KLCI (FBM KLCI) continues to be in negative territory before the mid-day break, as investor sentiment turns cautious over the prospects of recovery in the global economy.
The FBM KLCI dropped 5.96 points to 1,060.4, with losses led by plantation stocks IOI Corp Bhd, which lost 6 sen to RM4.60, Kuala Lumpur Kepong Bhd fell 20 sen to RM11.70 and Sime Darby Bhd was unchanged at RM7.25.
Heavyweights Genting Bhd shed 15 sen to RM5.65, Bumiputra-Commerce Holdings Bhd declined 10 sen to RM9.15 while IJM Corp Bhd decreased by 30 sen to RM5.45.
Media stocks associated with tychoon T. Ananda Krishnan, Astro All Asia Networks plc and Measat Global Bhd each gained 2 sen and 8 sen to RM3.40 and RM1.93 respectively.

Crude palm oil futures for October delivery fell below RM2,000 for the first time in three months. At 12.30pm, it lost RM80 per tonne to RM1,989.
OSK Investment Bank, in a recent report, said there was a lack of catalyst to sustainably turn around palm oil prices from the present down trend.
“Further weakening could not be ruled out, which might last into next year if demand does not pick up sufficiently to absorb the incremental supply,” the brokerage said.