Written by InsiderAsia
Asian stock markets extended losses on Thursday, May 6 as investors continued to fret over Greece’s debt woes and risks of the contagion spreading to other countries with high public debts.
Street protests in Greece, which resulted in three deaths, fuelled concerns that the government may not be able to carry out the tough austerity measures stipulated under the bailout package and which are needed to restore the country’s financial credibility. The euro dropped to fresh 14-month low against the US dollar.
Chinese stocks were also battered with investors unnerved by suggestions of further tightening measures as the government attempts to cool the property sector and damp inflationary threats. Most recently, the People’s Bank of China raised reserve requirements for banks by 50 basis points, for the third time this year.
The bellwether index in China was among the worst performing Thursday with the Shanghai Composite falling 4.1%. Elsewhere, the headline Nikkei index in Japan tumbled 3.3% upon resumption of trade after the exchange was closed for a three-day holiday.
Sentiment on the Bursa Malaysia too was weak. Market breadth was in the red throughout the trading day. The FBM KLCI opened lower but managed to move back into positive territory in the early hours. However, increased selling pressure pushed the benchmark index back into the red after the break. It closed some four points lower at 1,331.9.
Losing stocks outnumbered gaining ones by well over nine to two at the close. Glove manufacturers were among the big losers for the day. Top Glove closed 6% lower at RM11.60 while Kossan, Supermax and Adventa too were among the top losers. Other notable losers include Unisem, Hartalega and Tanjong plc.
About 899 million shares were traded. Some of the most heavily traded counters include KNM, Talam, Gamuda-WR, Unisem, Berjaya Corp and Sime Darby.
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