o The KL Composite closed at its lowest point since 2006 by closing >30 points or 3% to 859 points for the second consecutive days but of its intra-day low of 853 as it reacted to the negative sentiment on the Wall Street. Investors will look forward to the BNM decision on OPR and the release of the inflation figures for September.
o KLCI laggards were COMMERZ to RM6.80), MISC (-20 sen to RM8.20) and MAYBANK (-15 sen to rM5.15)
o KLCI leaders were PUBLICBANK (+5sen to RM8.75), BJTOTO (+8 sen to RM4.40) and YTL (+5 sen to RM5.85).
o Market breadth was negative with 477 declined outpacing 161 advancers.
o Volume increased to 613m shares worth RM1.06b from Wednesday’ shares 512m worth RM1.08b.
IN THE NEWS
SC Probes KNM's Abnormal Intra-Day Trading
HE Securities Commission (SC) has initiated a probe into the abnormal intra-day trading activities of KNM Group Bhd shares. "We are examining the announcements made by the company (KNM) on Bursa Malaysia. If there are any indications of wrongdoing or breaches of securities laws, then appropriate regulatory action will be taken," said SC spokesperson. The company was queried on October 15, following a sharp decrease in price and high volume of its shares. In its reply then, KNM said it was unaware of the cause for the unusual market activity.(Source: BT)
Mahathir: The Worst Is Not Over Yet
TUN Dr Mahathir Mohamad, the leader who steered Malaysia through the 1997-98 Asian financial crisis, said the current global turmoil is far from ending and will soon spread to the region's export-dependent economies. "The worst is not over yet. We do not even understand what is happening," Mahathir, who stepped down as prime minister in 2003, said in a Bloomberg Television interview yesterday in Putrajaya, outside Kuala Lumpur. "Asian countries are going to feel the pinch of a world where the market has collapsed." He reiterated his belief that governments worldwide should consider a new international monetary system that doesn't depend on any single currency.(Source: BT)
PNB: Time To Pick Good Stocks.
THERE are plenty of opportunities to selectively pick good stocks amid the current weak market, said the chief of Malaysia's largest fund manager, Permodalan Nasional Bhd (PNB). "There is a lot of opportunities because our (economic) fundamentals are still strong. We are not in a financial crisis and if you were to look at our companies, their (financial) results are not that bad," said PNB president and chief executive officer Tan Sri Hamad Kama Piah Che Othman. He said, however, that Malaysia would not be completely immune to a global slowdown. (Source: BT)
Palm oil slumps to 28-month low
MALAYSIAN crude palm oil futures fell for a third day to the lowest in 28 months as crude oil slumped,
reducing prospects for biofuel demand. Palm oil, used mainly in food, tracks crude oil as analysts consider it
viable for use as a biofuel when oil rises above US$80 a barrel. Crude pared gains in New York amid concerns
that global demand for fuels will slow as the US and European economies may slip into a recession. CPO for
January delivery fell as much as 5.8 per cent to RM1,475 a ton on the Malaysia Derivatives Exchange, the
lowest since June 2006. Prices have more than halved this year as demand lags behind supply. (Source: BT)
Petronas Carigali Awards RM2.8b Jobs
PETRONAS Carigali Sdn Bhd, the exploration and production arm of Petroliam Nasional Bhd (Petronas), has awarded 15 fabrication contracts worth a combined RM2.8 billion to five local companies. The largest portion, totalling RM1.17 billion, went to Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), followed by contracts worth RM1.12 billion to Sime Darby Engineering Sdn Bhd and RM288 million to Kencana HL Sdn Bhd. The remaining contracts worth RM140 million and RM102 million were awarded to Ramunia Fabricators Sdn Bhd and Oilfab Sdn Bhd respectively. (Source: BT)
PLUS Submits Proposals For India Highway Jobs
TOLL road operator PLUS Expressways Bhd said it has submitted proposals for toll concessions and highway
construction jobs in India. PLUS managing director Noorizah Abdul Hamid said the proposals were submitted
in response to requests from the National Highway Authority of India. She said if the proposals qualify, PLUS
will then submit bids for the contracts. The National Highway Authority of India is expected to call for a tender
early next year and name the successful bidders in the first quarter of 2009. PLUS' maiden highway project
into India early this year was for upgrading the existing road of about 21.6km into a four-lane toll-road in
Mumbai. (Source: BT)
Association Of Banks: No Credit Crunch In Malaysia
The Association of Banks in Malaysia (ABM) says there is no credit crunch in the country and that the banking sector remains strong and well capitalised despite the turmoil in the global financial markets. In a statement yesterday, ABM chairman Datuk Seri Abdul Hamidy Abdul Hafiz said: “It is business as usual and commercial banks are not putting any brakes on lending.” According to the ABM, unlike the liquidity crunch that was seizing some of the key developed markets such as the US, Britain and Europe, Malaysia had been relatively unaffected and liquidity level in the banking system was healthy. “As at end-August, loan-to-deposit ratio stood at 74.5% compared with the high 90% seen in 1997. (Source: The Star)
Bursa Will Continue To Launch New Products
Bursa Malaysia Bhd will still carry out its plans to introduce new products and services despite a looming global recession, the stock exchange operator said yesterday. “Bursa Malaysia is excited about the plans we have in store to further grow its competitiveness through the introduction of attractive products, improvement of market access, and enhancement of infrastructures,” said chief executive officer Datuk Yusli Mohd Yusoff. For example, Bursa would introduce the Bursa Trade (BT) by year-end. (Source: The Star)
Ho Hup: Low Fails To Get Re-Elected
Former managing director Datuk Low Tuck Choy failed yesterday to get re-elected as a director of Ho Hup
Construction Co Bhd, ending a 24-year relationship with the company’s board. “I have served the company for
24 years, 14 of which were as managing director,” he told reporters after the company AGM yesterday. Low
had been suspended as managing director of Ho Hup in late August for allegedly breaching his duties.
(Source: The Star)
