Wednesday Feb 9, 2011--KLCI is down by 3.48 to close at 1536.07

KLCI is down by 3.48 points to close at 1536.07. There were 2.1 billion shares traded value at 2.6 billion ringgit. There were 347 risers and 493 losers, 286 counters unchanged and 260 counters not traded.

Regional markets also fall because China raise interest rate.

There is a report from Reuters on the issue of China raising interest rate as follows:


Wed Feb 9, 2011 3:48am EST

* Hang Seng slides 1.4 percent, property, banks weigh

* HSBC at 52-week high, short-selling picks up

* Commodity-related counters hit by profit-taking

(Updates to close)

By Vikram S.Subhedar

HONG KONG, Feb. 9 (Reuters) - Hong Kong shares slid on Wednesday, with the benchmark index falling below its 100-day moving average after China's second interest rate rise in just over six weeks prompted a selloff in developers and energy counters.

The Hang Seng Index fell 1.4 percent to its lowest close this year while Shanghai's main stock index closed 0.9 percent lower after mainland markets reopened after a week-long break for Lunar New Year.

China's central bank raised interest rates on the last day of the holiday and set the yuan mid-point for the day's trading in the currency against the U.S. dollar at a record high as it battles stubbornly high inflation.

"We expect further interest rate tightening from China for as long as they need to curb inflation, cool off asset markets, while at the same time maintaining a slow appreciation of the RMB," said Wilfred Sit, Head of Asia Pacific Investment Strategy at Mirae Asset Global Investments in Hong Kong.

"The recent moves by China will give more room for other Asian countries to raise rates and regional equity markets will react negatively to this."

Property, commodity-related and financial firms led the selloff in Shanghai on worries that higher borrowing costs could curb consumer demand for homes and new loans. The property sub-index fell 2.1 percent.

That weighed on developers in Hong Kong which have lagged the broader market this year after a strong second-half rally in 2010.

Hong Kong's property sub-index fell 2.4 percent and is down 2.7 percent this year compared with the Hang Seng's mild 0.6 percent gain.

Chinese developers in Hong Kong were hit the hardest with New World Development down 4.2 percent, while Sino Land Co slumped 4 percent. Local bellwether Sun Hung Kai Properties Ltd fell 2.4 percent.