KLCI dives 39 points amidst RM re-pegging rumours
Leong Kar YenPublished: Apr 4, 2001 4:51 AM | Updated: Jan 29, 2008 10:21 AM
The Kuala Lumpur Stock Exchange (KLSE) Composite Index today shed a massive 38.91 points to close at 594.26, dropping 6.15 percent.
According to market analysts, the stock market suffered from the selling of major stocks including public utilities Tenaga Nasional Bhd and Telekom Malaysia, and financial flagship Maybank Bhd, also known as the TMT stocks.
An analyst from a market research firm told malaysiakini that the TMT stocks were experiencing heavy selling by foreign investors.
"Judging from the volume being sold, the selling of these stocks are by foreigners. They are selling ahead because of rumours that the government might be re-pegging the ringgit from RM3.80 to RM4.20," the analyst said on condition of anonymity.
Another analyst, who also wished to remain anonymous, stated that rumours on the possible re-pegging of the ringgit as one reason for the fall. He also said that it could also be the work of foreign investors who wish to capitalise on weak Asian currencies.
"A few factors were involved, such as the large 'sell' orders from foreign investors of TMT stocks and other favourites such as Sime Darby, Malaysia Airlines Systems and Public Bank," he said.
An analyst from another company said weak 'market fundamentals' contributed to the stock market's slide.
"The actual fundamentals have worsened, the earnings for a lot of corporations have gone down as well.
"The heavyweights are overpriced and the Malaysian economy shows no sign of taking globalisation seriously," he said.
He stressed, though, that the rumours of the ringgit's re-pegging were untrue.
An analyst interviewed said that rumours of a Securities Commission (SC) investigation into market manipulation at the KLSE could have also affected the falling market.
Possible manipulation
Meanwhile DAP chairperson yesterday reiterated his call for the SC to investigate into possible "last three-minute manipulation of the stock market through TMT stocks for the past three months".
"I had referred in particular to what happened on March 21 when the local bourse had earlier in the day plunged to a 23-month low of 638.5 points in early trading after investors dumped heavy weights (major stocks), but at the end of the day's trading, the KLCI rebounded strongly to close at 673.24," he said.
Lim added that the rebound was due to institutional buying of the TMT stocks all within the last three minutes of closing.
According to market analysts, the stock market suffered from the selling of major stocks including public utilities Tenaga Nasional Bhd and Telekom Malaysia, and financial flagship Maybank Bhd, also known as the TMT stocks.
An analyst from a market research firm told malaysiakini that the TMT stocks were experiencing heavy selling by foreign investors.
"Judging from the volume being sold, the selling of these stocks are by foreigners. They are selling ahead because of rumours that the government might be re-pegging the ringgit from RM3.80 to RM4.20," the analyst said on condition of anonymity.
Another analyst, who also wished to remain anonymous, stated that rumours on the possible re-pegging of the ringgit as one reason for the fall. He also said that it could also be the work of foreign investors who wish to capitalise on weak Asian currencies.
"A few factors were involved, such as the large 'sell' orders from foreign investors of TMT stocks and other favourites such as Sime Darby, Malaysia Airlines Systems and Public Bank," he said.
An analyst from another company said weak 'market fundamentals' contributed to the stock market's slide.
"The actual fundamentals have worsened, the earnings for a lot of corporations have gone down as well.
"The heavyweights are overpriced and the Malaysian economy shows no sign of taking globalisation seriously," he said.
He stressed, though, that the rumours of the ringgit's re-pegging were untrue.
An analyst interviewed said that rumours of a Securities Commission (SC) investigation into market manipulation at the KLSE could have also affected the falling market.
Possible manipulation
Meanwhile DAP chairperson yesterday reiterated his call for the SC to investigate into possible "last three-minute manipulation of the stock market through TMT stocks for the past three months".
"I had referred in particular to what happened on March 21 when the local bourse had earlier in the day plunged to a 23-month low of 638.5 points in early trading after investors dumped heavy weights (major stocks), but at the end of the day's trading, the KLCI rebounded strongly to close at 673.24," he said.
Lim added that the rebound was due to institutional buying of the TMT stocks all within the last three minutes of closing.
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