KUALA LUMPUR: Selling pressure on Bursa Malaysia picked up pace as trading volume on Friday rose to three billion shares while the FBM KLCI slipped below the key 1,700 level on selling of Axiata and IHH Healthcare.

At 5pm, the KLCI was down 6.13 points or 0.36% to 1,698.35. Turnover was 3.01 billion share valued at RM2.56bil. The broader market saw decliners beating advancers 530 to 358 while 360 counters were unchanged.

On the external front, Reuters reported Asian shares took a breather on Friday, slipping from 1-1/2-year highs as material shares were hit by sudden falls in copper and other commodity prices while investors assessed Washington's stance on tax and currency policies. 

Hong Kong stocks fell for a second day on Friday, as resource firms were hit by weak commodities markets in China and a sharp drop in money inflows from Shanghai, it said. 

On Bursa Malaysia, a technical chartist said the surge in trading volume reflected the rising selling pressure while the KLCI was unable to stay above the key 1,700 level as buying fizzled out.

Analysts said the recent Malaysian corporate results seemed better than the last four quarters with plantations, banks, airlines and some consumer companies exceeding expectations.

“The local stock market is constrained by global markets which are pulling back after a good run,” says the head of a local bank-backed research house.

The ringgit rose against the US dollar at 4.4425 from 4.4500 but slipped against the pound sterling to 5.5720 from 5.5501 and edged lower against the Singapore dollar at 3.1630 from 3.1478 and weakened against the Euro to 4.7021 from 4.6961.

Axiata extended its decline after proposing lower dividend and weaker set of financial results on Thursday. It ended Friday down 24 sen to RM4.29 and wiped out 3.65 points from the KLCI.

Other telcos which closed lower also were Maxis, down nine sen to RM6.29 and Digi four sen to RM5.02 while Telekom edge dup one sen to RM6.12.

IHH Healthcare fell 24 sen also to RM5.91 and erased 3.35 points. Genting Malaysia came uinder profit taking depsite the better FY16 results, falling 19 sen to RM5.28 but Genting Bhd added three sen to RM9.11.

Tenaga Nasional was flat at RM13.50 but MAHB lost 23 sen to RM6.35.

Among the banks, Maybank rose 20 sen to RM8.60 on its stronger FY16 and this saw it pushing the KLCI up 3.45 points. It was the biggest mover on the KLCI.

RHB Bank Bhd posted a set of improved earnings at RM1.68bil in the financial year ended Dec 31, 2016 but concerns grew over the allowances for impairments. It shed one sen to RM4.93.

As for AmBank, earnings rose 4.3% to RM313.16mil in the third quarter ended Dec 31, 2016 from RM300.15mil a year ago. It ended the day unchanged at RM4.63.

HLFG fell 12 sen to RM15.26, CIMB shed one sen to RM5.08 while Hong Leong Bank rose four sen to RM13.60.

Crude palm oil for third month delivery rose RM10 to RM2,792. IOI Corp rose nine sen to RM4.69 and Sime Darby four sen higher at RM9.20. KL Kepong fell 22 sen to RM24.08 while plantations-timber company Ta Ann was down 17 sen to RM3.82, PPB Group shed four sen to RM16.30, 

IGB surged 38 sen to RM2.90 with 3.46 million shares done after its major shareholder Goldis made an offer to the minorities to buy out their shares at RM3 each. Goldis rose 29 sen to RM2.79.

Oil prices fell on Friday after US crude inventories rose for a seventh week, showing the market is still struggling to ease oversupply despite many producers' efforts to rein in output, Reuters reported. 

US light crude oil fell 31 cents to US$54.14 and Brent was down 36 cents to US$56.22.

Among the oil and gas stocks, Petronas Chemicals rose four sen to RM7.41, Petronas Dagangan added two sen to RM24.32 but Petronas Gas shed four sen to RM20.54.

Among the key regional markets,

Japan’s Nikkei 225 fell 0.45% to 19,283.54;

Hong Kong’s Hang Seng Index lost 0.62% to 23,965.70;

CSI 300 rose 0.02% to 3,473.85;

Shanghai’s Composite Index edged up 0.06% to 3,253.43;

Hang Seng China Enterprise lost 0.98% to 10,418.66;

Taiwan’s Taiex shed 0.19% to 9,750.47;

South Korea’s Kospi ended 0.64% lower at 2,094.12 and 

Singapore’s Straits Times Index was down 0.65% to 3,117.03.

Spot gold rose US$6.60 to US$1,256.15.

...

Full Article on TheStar