Profit taking continues, KLCI slips to September low

KUALA LUMPUR: Profit taking on consumer stocks and telcos pushed the FBM KLCI to the lowest since Sept 28, in line with the weaker regional markets as investors worried about the US "fiscal cliff".
At 12.30pm, the FBM KLCI was down 11.83 points or 0.72% to 1,633.70. Turnover was 494.75 million shares valued at RM587.13mil. There were 148 gainers, 426 losers and 285 stocks unchanged.
However, the stronger-than-expected September industrial production index (IPI) could provide some support for the weak sentiment. The IPI surged 4.9% in September from a year ago, boosted by the increase in manufacturing output.
Bloomberg data showed economists' expectations were only 0.6% growth on-year.
Reuters reported the DJIA lost more than 300 points in a sell-off on Wednesday that drove all major stock indexes down over 2% in the wake of the presidential election as investors' focus shifted to the looming "fiscal cliff" debate and Europe's economic troubles.
Among the key regional markets, Japan's Nikkei 225 fell 1.65% to 8,824.78; Hong Kong's Hang Seng Index was down 1.4% to 21,790.50; Shanghai's Composite Index fell 1.02% to 2,084.35; Taiwan's Taiex declined 0.93% to 7,219.14 and South Korea's Kospi 1.39% lower at 1,910.67. Singapore's Straits Times Index gave up 0.99% to 3,013.26.
US light crude oil rose 48 cents to US$84.92 and Brent 59 cents higher at US$107.41. Spot gold fell US$1.4 to US$1,716.15.
The ringgit was weaker against the US dollar at 3.0618.
Crude palm oil for third-month futures fell RM10 to RM2,387.
Dorab Mistry, head of edible oil trading at Indian conglomerate Godrej Industries said benchmark Malaysian palm oil prices must stay at around RM2,200 a tonne for two months in order to stimulate demand for the edible oil and reduce high stock levels.
Among the plantations, PPB Group fell 34 sen to RM12.62 and KL Kepong 28 sen to RM20.70. IOI Corp's 13 sen decline to RM4.92 erased 1.94 points off the KLCI.
As seen in recent days, consumer stocks fell the most, with BAT down RM1.76 to RM57.48, dragging the KLCI down 1.07 points, Dutch Lady fell RM1.06 to RM44.74 and Nestle 78 sen to RM64.70.
Hong Leong Bank fell 22 sen to RM14.46, the biggest loser among the banks as it came under some selling. Aeon Credit lost 16 sen to RM13.30.
Telcos were actively traded, with TM down 16 sen to RM5.44, DiGi eight sen to RM4.82 but Axiata recouping part of the recent losses to climb eight sen to RM5.91.
Allianz-PA and Allianz rose seven sen each to RM8.08 and RM8.13.