KLCI falls nearly 27 points as banks weigh

KUALA LUMPUR: The FBM KLCI fell nearly 27 points in late Wednesday morning, weighed down by losses in banks and plantation stocks, despite a positive outlook on local banks.

At 10.36am, the FBM KLCI was down 26.76 points or 1.59% to 1,659.35. Turnover was 900.72 million shares valued at RM610.29mil. Losers battered gainers 646 to 145 while 224 counters were unchanged.

Bloomberg reported Asian equities climbed from a four-week low ahead of an onslaught of Chinese economic data, while the dollar retreated against high-yielding currencies and crude oil resumed its descent.

Gains in Australian and Japanese stocks drove the advance among Asian shares, which slid last session as evidence of the slowdown in China's economy unsettled investors already bracing for higher U.S. interest rates as soon as December. 

At Bursa Malaysia, Hong Leong Bank fell 62 sen to RM13.44, HLFG extended its losses, down 38 sen to RM13.74 while its rights shares lost 36 sen to RM2.03 – the second trading day of losses since they were listed on Monday. Public Bank fell 36 sen to RM17.82.

CIMB Equities Research is upgrading Malaysian banks from Underweight to Overweight due to enticing valuations, better earnings growth in 2016, a subsiding equity capital raising spree, the benefits of cost-cutting, attractive dividend yields, and flush liquidity.

KL Kepong fell the most, down 74 sen to RM22.66 after the late buying on Monday which nudged the KLCI into the black.

PPB Group lost 24 sen to RM15.36 and Sime Darby 19 sen lower at RM8.11

Hibiscus Petroleum fell six sen to 30.5 sen in very active trade after it struck an oil well at the Sea Lion-1 well off Australia. Trading was halted for one hour at 9am to 10am.

Ge-Shen jumped 20 sen to RM1.66 after its strong earnings. Glove makers continued to draw strong interest, with Top Glove up 20 sen to RM9.92, Hartalega 12 sen to RM5.62 and its call warrants, Harta-CN adding 9.5 sen to 72.5 sen.

Source: http://www.thestar.com.my/Business/Business-News/2015/11/11/KLCI-falls-nearly-27-points-as-banks-weigh/?style=biz