Index falls more than 1% at open

OPPORTUNITY

KUALA LUMPUR: Bursa Malaysia's benchmark FBM KLCI fell 1.05% to 1,290.51 at the opening of Friday trade on concerns of a growing sovereign debt crisis in the euro-zone and higher jobless claims in the US.

Today marked the sixth successive day that the index has opened in negative territory. In the region, Tokyo's Nikkei 225 tumbled 3.06% to 9,723.06, Sydney's S&P/ASX 200 Index shed 3.09% to 4,183.10 and Singapore's Straits Times Index lost 2.24% to 2,691.94.

Meanwhile, RHB Research Institute Sdn Bhd chartist Khoo Ban Yu said in an interview with Bloomberg that the FBM KLCI has formed a “dead cross” pattern, a bearish indicator signalling further losses for the gauge.

He added that a drop below the 1,300-level would be a signal that the market was in a correction phase and this might result in a further retracement toward the next support levels of around 1,250 and 1,200.

In the latest announcements to Bursa Malaysia, MIMB Investment Bank, which requested a trading halt for EON Capital's share trading between 9am and 10am, said EON Capital's board of directors has accepted Hong Leong Bank's offer to acquire the former.

The investment bank said the proceeds of RM5.06bil from the disposal would be distributed to shareholders subject to shareholders' approval of the acquisition in an EGM.

Nymex crude oil in electronic trade was down US$1.05 to US$69.75 per barrel.

Spot gold was 5 cents higher at US$1,182.35 per ounce.

The ringgit was quoted at 3.317 to the US dollar.