KUALA LUMPUR: Stock prices on Bursa Malaysia fell on Thursday, led by steep overnight losses on Wall Street and surging crude oil prices.
Market breadth was negative and trading volume stayed low as investors remained cautious, although the KLCI managed to limit its losses.
Taking its cue from overnight steep losses on Wall Street, the KLCI fell as much as eight points at the open, and was in negative territory throughout the entire day. The benchmark index later recouped much of its losses to end just 3.6 points lower at 1,277.6 points.
The day's most actively traded stocks include Telekom, Liqua, AirAsia, YTL Power, Ramunia, Sime Darby and Bumiputra-Commerce. Top gainers include Petronas Dagangan, Berjaya Land, Chin Teck and Lafarge Cement. Losers include BAT, KL Kepong, Green Packet and PPB Oil Palms.
The KLCI's resilience - it was one of the best performing markets in the region on Thursday - belies the broader market's weakness. Declining stocks beat advancing ones by a roughly 2-to-1 ratio for much of the day, before improving slightly to a ratio of 7-to-5 at the close. Trading volume was low at just 488 million shares.
Investors are generally opting to err on the side of caution given the prevailing uncertainties on the domestic political and external economic fronts.
The external picture is starting to look worrisome again. While most believe that the worst of the credit crunch is over, the pain on Main Street USA is likely to get worse.
More worrying for now is the surge in crude oil prices to over US$134 (RM435.50) per barrel. Rising oil prices will place even greater pressure on global economic growth which is already slowing, and fuel inflationary pressures. Given that the Federal Reserve has already cut interest rates to just 2%, further ammunition to stimulate growth is also less readily available in the near term.
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