KL shares still in the red at midday

Share prices on Bursa Malaysia continued to lose grounds at midday today as the market remained under pressure on external developments.

At 12.30pm, the FBM KLCI was down 10.10 points at 1,472.89, after opening 5.24 points lower at 1,477.75.

Dealers said investors were cautious ahead of a European Union summit this week. Economic data from Japan and Australia that indicated the global economy is slowing also weighed on the local equity market.

The Finance Index dipped 125.78 points to 13,107.37, the Industrial Index slipped 7.39 points to 2,673.03 and the Plantation Index dropped 49.88 points to 7,832.94. The FBM Emas Index lost 59.25 points to 10,085.62, the FBM 70 Index declined 35.03 points to 10,997.26 and the FBM Ace Index was down by 46.98 points to 4,214.26.

Decliners led advancers by 364 to 216 while 275 counters were unchanged, 631 untraded and 25 others suspended. Trading was moderate with a total volume of 895.838 million shares worth RM498.921 million.

Among active stocks, SAAG Consolidated earned 0.5 sen to 7.0 sen, Sycal Ven-WA added 3.5 sen to 13 sen and DVM Technology inched up 1.0 sen to 10 sen.

Sanichi Technology was suspended pending a reply to queries and further clarification on the details of the two announcements made by the company yesterday. British American Tobacco lost 34 sen to RM47.66, JT International eased 25 sen to RM6.55, while Kuala Lumpur Kepong erased 22 sen to RM21.94

Of the heavyweights, Maybank dropped 9.0 sen to RM8.21, Sime darby was flat at RM8.94, CIMB fell 15 sen to RM7.05 while Petronas Chemicals edged up 1.0 sen to RM6.09. -- Bernama



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Asian markets fall on doubts over European leaders’ summit outcome

KUALA LUMPUR (Dec 8): The FBM KLCI slipped on Thursday in line with the weaker overnight close at European bourses as well as Wall Street, following growing concerns over the eurozone debt crisis and doubts over whether a European policymakers’ summit this week would solve the financial woes there.

The FBM KLCI fell 10.62 points to 1,472.37 at 10am, weighed by losses at blue chip stocks.

Losers led gainers by 232 to 164, while 195 counters traded unchanged. Volume was 465.58 million shares valued at RM206.77 million.

Asian shares drifted lower as a report that the G20 was preparing a $600 billion lending facility for the International Monetary Fund (IMF) to help Europe was denied by G20 and IMF officials, according to Reuters.

Meanwhile, Standard & Poor's warned on Wednesday that it could cut the credit ratings of the European Union and large euro-zone banks if a mass downgrade of euro-zone countries materializes.

S&P had said on Monday it may downgrade nearly all 17 euro-zone countries if EU leaders fail to agree on a solution for the region's debt crisis during Friday's summit.

At the regional markets, Hong Kong’s Hang Seng Index lost 1.03% to 19,041.67, Japan’s Nikkei 225 fell 0.97% to 8,637.95, Taiwan’s Taiex was down 1.36% to 6,937.42, South Korea’s Kospi lost 0.69% to 1,906.23, Singapore’s Straits Times Index fell 0.68% to 1,472.90 and the Shanghai Composite Index shed 0.62% to 2,318.21.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Thursday said the FBM KLCI’s resistance areas of 1,484 and 1,503 may cap market gains, whilst the obvious support areas may be located at 1,465 and 1,482.

“Due to the US markets’ mixed tone last night, we might a quiet and benign day for the local index today,” he said.

Among the losers on Bursa Malaysia at mid-morning were BAT that fell 40 sen to RM47.60, JT International down 29 sen to RM6.51, IJM Corp 25 sen to RM5.45, KLK 24 sen to RM21.92, PPB and Hong Leong Bank down 20 sen each to RM16.20 and RM10.54, Uzma 15 sen to RM1.60, Allianz and KrisAssets down 13 sen each to RM4.75 and RM5.25, while Axiata lost 12 sen to RM4.97.

SAAG was the most actively traded counter with 60.5 million shares done. The stock added one sen to 7.5 sen.

Other actives include DVM, Sycal, Timecom, Time, MUI Industries and YGL.

Meanwhile, gainers included Nestle, United PLANTATION []s, BHIC, Proton, Dutch Lady, Tradewinds Plantations, Petrol-One, Boxpak and Eng Kah.



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DRB-Hicom gains afer VW partnership news

DRB-Hicom Bhd, an automotive, construction and property group, gained in Kuala Lumpur trading after the Star newspaper reported that it may partner Volkswagen AG to buy a controlling stake in Proton Holdings Bhd.

The stock increased 2.9 per cent to RM2.16 at 10.09am local time. -- Bloomberg



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Proton jumps on GM tie-up talks news

Proton Holdings Bhd rose in Kuala Lumpur trading after Bloomberg News reported that General Motors Co had begun partnership talks with Malaysia’s national carmaker, citing two unidentified people familiar with the matter.

The stock rose 1.2 per cent to RM4.09 at 9.16am local time. Separately, the Star newspaper reported that Volkswagen AG may partner Malaysia’s DRB-Hicom Bhd. to buy a controlling stake in Proton, citing an unnamed person familiar with the matter. -- Bloomberg



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KL shares subdued in early trade

Share prices on Bursa Malaysia got off to a subdued start today as investors globally remained cautious ahead of a European Union summit this week.

Fifteen minutes after the opening, the FBM KLCI slipped 10.22 points to 1,472.77. It had opened 5.24 points lower at 1,477.75.

Dealers said investors' sentiment on lingering hopes that the euro zone would figure out a solution to its ongoing debt crisis continued to weigh on the local bourse. Investors were also cautious of the upcoming China inflation data later this week.

The Finance Index fell 74.721 points to 13,158.43, the Plantation Index eased 38.7 points to 7,844.12 and the Industrial Index slipped 21.76 points to 2,658.66. The FBM Emas Index dropped 54.811 points to 10,090.06, the FBM Mid 70 Index was 26.64 points lower at 11,005.65 and the FBM ACE Index decreased 10.47 points to 4,250.77.

Decliners led advancers 135 to 83 while 149 counters were unchanged, 1,119 untraded and 25 others suspended. Turnover stood at 158.071 million shares valued at RM52.450 million.

Sycal Ven-WA added 5.0 sen to 14.5 sen, SAAG Consolidated was flat at 6.5 sen, Sycal Ventures inched up 4.0 sen to 27.5 sen and Denko Industrial advanced 3.5 sen to 41.5 sen.

For heavyweights, Maybank shed 7.0 sen to RM8.23, Sime Darby dwindled 10 sen to RM8.84, CIMB eased 8.0 sen to RM7.12 while Petronas Chemicals was unchanged at RM6.08. -- Bernama



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BHIC advances in early trade

KUALA LUMPUR (Dec 8): Shares of BOUSTEAD HEAVY INDUSTRIES CORPORATION BHD (BHIC) rose in early trade on Thursday after announced that its subsidiary BHIC AeroServices (BHICAS) Sdn Bhd had been awarded the certification by Directorate General Technical Airworthiness of the Malaysian Armed Forces, which is the Malaysian technical airworthiness authority.

At 9.45am, BHIC gained 20 sen to RM3.06 with 409,000 shares traded.

The AMO certification is for the maintainance, repair & overhaul (MRO) of Eurocopter AS555SN Fennec helicopters, it said.

BHICAS is a joint venture between BHIC Defence Technologies Sdn Bhd, a wholly-owned subsidiary of Boustead Penang Shipyard Sdn Bhd, Prestige Pillar Sdn Bhd and Eurocopter Malaysia Sdn Bhd, a wholly-owned subsidiary of Eurocopter.



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GM said to revive talks with Proton

General Motors Co has begun talks with Proton Holdings Bhd, Malaysia’s biggest automaker, to form a manufacturing venture in the Southeast Asian country, according to two people familiar with the matter.

The discussions revive negotiations that were scrapped in 2007, said the people, who asked not to be identified because the talks are confidential. The talks are preliminary and may not lead to an agreement, they said.

For GM, an agreement would help the Detroit-based carmaker expand manufacturing of cars for Southeast Asia beyond Thailand, where the country is reeling from its worst floods in almost 70 years.

A deal may allow Proton, which has held unsuccessful alliance talks with Volkswagen AG and Peugeot SA, to gain access to GM technology that could help the Malaysian carmaker boost sales overseas.

Klaus-Peter Martin, a GM spokesman in Detroit, declined to comment. Izad Raya, head of group communications at Proton, which owns sports-car maker Lotus Group International Ltd, said the company doesn’t comment on speculation.

GM isn’t interested in buying the controlling 43 per cent stake in Proton held by Malaysian sovereign wealth fund Khazanah Nasional Bhd, the people said. Proton shares jumped 45 per cent over two days on Dec 5 after the Edge reported the state-owned asset manager was preparing to auction its holdings.

Auto and property group DRB-Hicom Bhd, Naza Group and Proton chairman Mohd Nadzmi Mohd Salleh submitted separate bids to Khazanah for Proton, Malaysia’s The New Straits Times newspaper reported this week, without saying where they obtained the information. -- Bloomberg



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Boustead rises to 3-month high

Boustead Heavy Industries Corp, a Malaysian shipbuilding and engineering group, rose to a three- month high in Kuala Lumpur trading after announcing plans to form a pilot training venture with Eurocopter Malaysia Sdn.

The stock rose 3.5 per cent to RM2.96 at 9.06 am local time, set for its highest close since Sept 5. -- Bloomberg



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