News Room - Steel Industry

Posted on 01 Aug 2008

Asian markets slide in early trade, steel stocks up

Asian markets fell in early trade on Friday, as investorsa€? sentiment took a knock after the overnight fall on Wall Street following weak US economic growth, sparking off concerns about the health of the financial sector. However, steel stocks bucked the trend. 

At 9.30am, the KL Composite Index was down 6.51 points to 1,156.58. Turnover was 25.34 million shares done valued at RM27.18mil. There were 51 gainers, 127 losers and 71 counters unchanged.

Japana€?s Nikkei 225 fell 1.87% to 250 points to 13,126.9, Singaporea€?s Straits Times Index fell 1.03% to 2,899.36 and Shanghaia€?s A Shares Index was 1.17% lower at 2,877.48.

Light crude oil eased to US$123.80 per barrel.

CIMB Economics Research expected Malaysiaa€?s GDP growth to slow down from 6.0% to 6.5% in the first half to 4.0% and 4.5% in the second half due to the restraining impact of higher fuel prices, tariff and food Prices.

a€?This takes this yeara€?s growth estimate to 5.3% (6.3% in 2007). We project real GDP growth to moderate to 5.0% in 2009, reflecting the continuing impact of high fuel prices and tariff on spending,a€? it said.

At Bursa Malaysia, Genting, BCHB, Bursa and Maybank fell 10 sen each to RM5.80, RM8.65, RM7.10 and RM7.85 respectively.

However, steel-related stocks were traded higher. Yung Kong Galvanising shares rose 3.5 sen to 44.5 sen and the warrants 1.5 sen to 15 sen in active trade. Southern Steel added 13 sen to RM3.12, Malaysia Steel six sen to RM1.50 and Eonmettal four sen to 72 sen.

DiGi rose 35 sen to RM25.25, Petronas Gas 20 sen to RM10 while Southern Steel gained 13 sen to RM3.13.