Iraq Strike Causes `Panic Selling'
May 16, 2011
The Kuala Lumpur Stock Exchange Composite Index fell 12.88 to 1093.32. Volume was 221.0 million shares valued at 1.85 billion ringgit. Decliners led advancers 565 to 54, with 80 shares unchanged and 66 untraded. Analysts described ``panic selling'' at the bourse following news of the U.S. air strike at the midday break. They added that although few investors believe the attack will have any impact on Malaysia, the selling was a response to uncertainty about the situation. Trading was light prior to that news, as investors decided that data released Monday indicating money-supply growth was still high was a negative signal. Traders said that money-supply growth indicates stable or climbing interest rates. And, when news emerged Tuesday afternoon that manufacturing sales were up -- another sign that the economy was still growing strongly -- dealers said the market ignored the information to focus on Iraq. The Emas Index, which tracks all main-board shares, fell 3.82 to 315.34. The Second Board Index, which tracks smaller shares, fell 13.89, or 2.6%, to 522.57. Among the blue-chip shares that closed lower were R.J. Reynolds, which slipped 15 sen to 7.05 ringgit and Telekom Malaysia, which fell 40 sen to 21.30 ringgit.
VastPress 2011 Vastopolis
