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FBM KLCI traded lower at close

KUALA LUMPUR: The FBM KLCI and other stock markets in Asia slipped on Wednesday, as investors took in Moody's downgrade of its rating on Japanese government debt and shrugged off both a surge on Wall Street and fresh efforts by the Japanese government to prop up feeble economic growth.

In the news were CIMB Group Holdings Bhd, which announced record second quarter earnings and Axiata Group Bhd, which also saw its net profit rise in the similar quarter.

However, local airlines Malaysia Airlines (MAS) and AirAsia Bhd saw higher fuel cost eat into their second quarter operating numbers, with MAS posting a net loss of RM526.68mil while AirAsia posted a slight drop in its net profit at RM104.26mil.

Over in Singapore, its inflation accelerated to the fastest pace since January as transportation and housing cost increased. The consumer price index rose 5.4% last monthg from a year earlier, higher than the median survey of 5%.

Meanwhile the Federal Reserve chairman Ben Bernanke will be speaking at an annual gathering in Jackson Hole, Wyoming this Friday. Markets will be searching for something, anything, that indicates whether more stimulus is on the way.

A year ago during this same conference, Bernanke, described all the weapons the Fed had available to rescue the economy. Several months later, the Fed opened its arsenal and began a major asset-purchasing program intended to stimulate growth.

Over in the US, markets closed near session highs, with the Dow Jones posting its biggest gain in almost two weeks, despite a 5.8-magnitude earthquake in Virginia and after investors shrugged off a handful of disappointing economic news.

The Dow Jones Industrial Average added 2.97% or 322.11 points at 11176.76. Nasdaq Composite rose 4.29% or 100.68 points at 2446.06. Standard & Poor's 500 advanced 3.43% or 38.53 points at 1162.35.

On economic data front, new home sales dipped in July, to a five month low, falling nearly 1% to a seasonally adjusted annual rate of 298,000.

At 5pm, the FBM KLCI was down 13.22 points to 1,469.15. There were a total of 209 gainers and 528 losers with 294 stocks unchanged.

Tokyo's Nikkei 225 was down 1.07% to 8,639.61 and Hong Kong's Hang Seng Index was down 2.06% to 19,466.79.

Shanghai's A index was down 0.51% to 2,541.09 while Taiwan's Taiex Index was down 0.63% to 7,502.93.

Seoul's Kospi Index was down 1.23% to 1,754.78, with Singapore's Straits Times Index down 1.57% to 2,721.81.

Nymex crude oil was down $0.21 to US$85.23 per barrel.

Spot gold was up US$23.55 at US$1,852.18 per ounce.

The Ringgit was traded at 2.9785 to the Dollar