By JOSEPH CHIN
KUALA LUMPUR:Maybank fell as much as 4.73% in early trade on Wednesday, weighing down the market while the KL Composite Index approached the 1,000-level as investors were still concerned about its acquisition of Bank Internasional Indonesia (BII).
At 9.30am, the KL Composite Index was down 8.70 points to 1,003.67. Turnover was 50.39 million shares valued at RM89mil. There were 60 gainers, 121 losers and 67 counters unchanged.
Light crude oil rebounded, rising US$2.66 to US$93.80 per barrel.
Asian markets fared better after a firmer close on Wall Street on some hope for a lifeline for AIG. South Korea’s Kospi jumped 48.1 points or 3.47% to 1,435.85, Japan’s Nikkei 225 rose 255.85 points or 2.2% to 11,865.57, Singapore’s Straits Times Index added 1.17% to 2,490.23 but Shanghai’s A Share Index eased 0.5% to 2,075.25.
On the market outlook, HwangDBS Vickers Research said Asian markets should show some relief rebound following the overnight rise on Wall Street.
“This comes even though the U.S. Federal Open Market Committee decided to leave the benchmark federal funds rate unchanged at its scheduled meeting last night.
“Nonetheless, investors will likely remain cautious ahead, watching out for the possibility of more victims in the ongoing financial crisis following the Lehman Brothers collapse,” it said.
While the research house was expecting some improvement in market sentiment at Bursa Malaysia, it said the immediate upside potential for the KLCI was expected to be capped at a technical resistance level of 1,020 due to the light buying interest.
On Tuesday, Maybank’s hopes to acquire BII were revived after Indonesia’s financial regulator Bapepam said it might extend the timeframe for Maybank to sell down its BII stake after a proposed acquisition.
Malaysia’s largest bank by assets also said Bank Negara had reinstated its approval for the acquisition following the latest development.
A local research house said while it was pleased that the deal would go ahead, the flip-flops in the past two months underscore the high policy risks of operating in Indonesia.
Furthermore, the potential BII loss might be an earnings overhang in the next few years, it added.
Maybank fell as much as 35 sen to RM7.05. It saw 1.36 million shares transacted.
Batu Kawan and KLK fell 30 sen each to RM6.80 and RM9.60 while IOI Corp lost 12 sen to RM3.92 and Kulim 10 sen lower to RM5.20 and Kulim-WB 12 sen to RM3.
BCHB eased 20 sen to RM7.65 and Genting slipped 14 sen to RM4.78 and Tenaga 10 sen to RM6.40.
However, Tong Herr added 52 sen to RM2.80 while Parkson added 10 sen to RM4.18 and AFG six sen to RM2.70 while Public Bank rose five sen to RM9.85
KUALA LUMPUR:Maybank fell as much as 4.73% in early trade on Wednesday, weighing down the market while the KL Composite Index approached the 1,000-level as investors were still concerned about its acquisition of Bank Internasional Indonesia (BII).
At 9.30am, the KL Composite Index was down 8.70 points to 1,003.67. Turnover was 50.39 million shares valued at RM89mil. There were 60 gainers, 121 losers and 67 counters unchanged.
Light crude oil rebounded, rising US$2.66 to US$93.80 per barrel.
Asian markets fared better after a firmer close on Wall Street on some hope for a lifeline for AIG. South Korea’s Kospi jumped 48.1 points or 3.47% to 1,435.85, Japan’s Nikkei 225 rose 255.85 points or 2.2% to 11,865.57, Singapore’s Straits Times Index added 1.17% to 2,490.23 but Shanghai’s A Share Index eased 0.5% to 2,075.25.
On the market outlook, HwangDBS Vickers Research said Asian markets should show some relief rebound following the overnight rise on Wall Street.
“This comes even though the U.S. Federal Open Market Committee decided to leave the benchmark federal funds rate unchanged at its scheduled meeting last night.
“Nonetheless, investors will likely remain cautious ahead, watching out for the possibility of more victims in the ongoing financial crisis following the Lehman Brothers collapse,” it said.
While the research house was expecting some improvement in market sentiment at Bursa Malaysia, it said the immediate upside potential for the KLCI was expected to be capped at a technical resistance level of 1,020 due to the light buying interest.
On Tuesday, Maybank’s hopes to acquire BII were revived after Indonesia’s financial regulator Bapepam said it might extend the timeframe for Maybank to sell down its BII stake after a proposed acquisition.
Malaysia’s largest bank by assets also said Bank Negara had reinstated its approval for the acquisition following the latest development.
A local research house said while it was pleased that the deal would go ahead, the flip-flops in the past two months underscore the high policy risks of operating in Indonesia.
Furthermore, the potential BII loss might be an earnings overhang in the next few years, it added.
Maybank fell as much as 35 sen to RM7.05. It saw 1.36 million shares transacted.
Batu Kawan and KLK fell 30 sen each to RM6.80 and RM9.60 while IOI Corp lost 12 sen to RM3.92 and Kulim 10 sen lower to RM5.20 and Kulim-WB 12 sen to RM3.
BCHB eased 20 sen to RM7.65 and Genting slipped 14 sen to RM4.78 and Tenaga 10 sen to RM6.40.
However, Tong Herr added 52 sen to RM2.80 while Parkson added 10 sen to RM4.18 and AFG six sen to RM2.70 while Public Bank rose five sen to RM9.85
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