KL stocks fall almost 10%
Mar 10, 08 4:17pm
Malaysian stocks tumbled the most in a decade today with government-linked companies hardest hit after the weekend’s political upsets.
At 2:58pm, trading was stopped for an hour as the Kuala Lumpur Composite Index (KLCI) fell 130.01 points to 1,166.32, from the previous day’s closing level 1,296.33 - about 10.03 percent.
Trading resumed at 3:58pm, and the stock market recovered slightly.
After it closed for the day at 5pm at 1,117.2, a drop of 123.11 or 9.5 percent.
This was the biggest one-day percentage loss in recent years. The turnover was valued at RM2.47 billion.
State-owned banks like Bumiputra-Commerce Holdings Bhd and government-linked companies such as Malaysian Resources Corp, UEM World Bhd and Sime Darby were among counters that registered falling prices.
According to a statement from Bursa Malaysia Securities Bhd, the decision to halt trading is to maintain market stability and allow traders to consider new information before making investment decisions.
When the KLCI registers a 10 percent drop from the previous day’s closing level, the circuit breaker is automatically triggered.
However, as investors unloaded local stocks, credit rating agencies Fitch and Moody’s maintained their sovereign ratings on Malaysia.
Despite acknowledging that the level of political uncertainty in the country had increased, the agencies said the economy is still on solid ground.
Monday March 10, 2008
MYT 3:29:15 PM
Bursa Malaysia halts trading after KLCI falls 10% limit
KUALA LUMPUR: Bursa Malaysia halted trading at 2.58pm after the Kuala Lumpur Composite Index (KLCI) fell 10%, which is the maximum limit.
Trading will resume at 3.58pm.
The KLCI fell 130.01 points to 1,166.32, the biggest one-day percentage loss in recent years.
Turnover was 913 million shares valued at RM2.47bil. Losers hammered gainers 887 to 19.
Sime Darby fell RM1.90 to RM9.10, KPS lost RM1.74 to RM1.68, DiGi RM1.70 to RM21.30 while BCHB fell RM1.65 to RM8.55.
Other losers were IJM, down RM1.45 to RM5.50, Puncak RM1.36 to RM3.16, Tenaga RM1.25 to RM7.40 and Bursa RM1.05 to RMN8.90.