FBMKLCI
1772.62 -22.46pts (-1.25%)
Volume 1.919b Value RM3.057b
1) The KLCI came under selling pressure from the onset
after Fitch Rating agency downgraded Malaysia's soverign credit rating outlook
to "negative" from "stable". In the regional market, a
few indices closed down due to program
selling during the last half hour of the trading session, ASX +0.09%,
KOSPI-0.16%, NIKKEI-1.45%. In the local market, key blue chips were among the
biggest losers led by MAYBANK-2.84%, CIMB -3.43%, SKPETRO -3.98% and UEMS-6.3%.
Market value traded hit RM3bn as broad based selling saw losers towering over
gainers by 753 : 131. Futures closed 1766 (6.6 pts discount).
2) Heavyweights : CIMB -3.43% RM7.87, MAYBANK -2.84%
RM10.26, SKPETRO -3.98% RM3.86,TENAGA -1.22% RM8.89, UEMS -6.29% RM2.68, MISC
-3.03% RM5.44, HLBANK -2.68% RM13.80, UMW -2.39% RM13.86
3) DBT : MULPHAL 7.848mil @ RM1.00 (8.594% PUC @ 3%
discount), INARI 3.9mil @ RM0.78 (12% discount), KRETAM 3mil @ RM2.50 (15%
discount).
DIALOG -7.0% RM2.79 - Petronas will start up the refinery
within its US$19 billion (RM61 billion) petrochemicals complex in Malaysia at
end 2017, signalling a further delay in the country's largest-ever
infrastructure project.
5) Economics
The Malaysian Government today in response to the Fitch
downgrade has reiterated its commitment to cut the deficit to 3% by 2015 and
wont let state debt exceed 55% of GDP. This will be done via a rationalisation
of subsidies and broadening the tax base. It also points out that the bulk of
its sovereign debt is domestically financed and the economy is fundamentally
healthy.
The government will have its first chance to show
investors how seriously they are taking this matter during the 2014 Budget,
tabled on the 25th Oct.
6) Market - Selling momentum looks likely to continue
with the KLCI immediate support at 1752 and 1730 points.
