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Monday, January 16, 2017

Market Daily Report: FBM KLCI dips 13.66 points on Brexit concerns, China share slump

KUALA LUMPUR (Jan 16): The FBM KLCI fell 13.66 points or 0.8% on renewed concerns over the UK's planned exit from the European Union (EU) and after China's Shenzhen Stock Exchange Composite fell as much as 6.1% in intraday trade.

The UK's planned exit from the EU is popularly known as Brexit.

In Malaysia, the KLCI closed at its intraday low at 1,658.84 points. Bursa Malaysia saw 1.79 billion shares, worth RM1.61 billion, traded. There were 225 gainers and 611 decliners.

The KLCI fell with Asian share markets. In China, the Shenzhen Stock Exchange Composite pared losses to close 3.62% lower, while Hong Kong's Hang Seng fell 0.96%. Elsewhere, Japan's Nikkei 225 declined 1%.

Reuters reported the sterling slid to three-month lows in Asia on Monday, with investors spooked anew by concerns over Britain's divorce from the EU, while US policy uncertainty lingered ahead of President-elect Donald Trump's inauguration.

Meanwhile, Bloomberg reported the Shenzhen Stock Exchange Composite sank as much as 6.1%, the biggest loss since Feb 29. Traders pointed to concern that regulators will accelerate the pace of initial public offerings, already at a 19-year high, diverting liquidity from existing shares.

In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong told that the KLCI was ripe for profit taking, following recent steady gains.

“For the past two weeks, the market has been steadily moving upwards. Since last year, the market has been up about 30 points,” Wong said.

Source: The Edge

Thursday, January 12, 2017

Market Daily Report: KLCI extends gains as ringgit strengthens

KUALA LUMPUR (Jan 12): The FBM KLCI extended gains today, rising 2.55 points or 0.2%, as the ringgit strengthened slightly against the U.S. dollar.

The KLCI closed at 1,677.76, with gains in counters such as British American Tobacco (M) Bhd and Genting Bhd lending support to the index's advance. The ringgit strengthened to 4.4583 against the U.S. dollar in late afternoon trading, compared with yesterday’s close of 4.4722.

Across Asia, Hong Kong's Hang Seng fell 0.46%; Japan's Nikkei 225 declined 0.58%; while South Korea's Kospi gained 0.58%.

Reuters reported the U.S. dollar nursed widespread losses today, after President-elect Donald Trump's long-awaited news briefing provided scant clarity on future fiscal policies, disappointing bulls wagering on major stimulus.

Yet, neither did Trump mention possible tariffs against Chinese exports — a relief for Asian share markets that have feared the outbreak of a global trade war.

Etiqa Insurance and Takaful Bhd head of research Chris Eng said the KLCI has beefed up as expected, with positive sentiment seen, following the ringgit’s rise against the greenback.
“Ringgit has strengthened slightly. The KLCI is expected to continue trend higher, mildly moving forward," he told via telephone.

A total of 2.54 billion shares, worth RM2.19 billion, were traded on Bursa Malaysia today. Gainers outnumbered decliners by 539 to 298.

BAT was top gainer, while Time dotCom Bhd was the leading decliner.

IFCA MSC Bhd was the most actively-traded stock on continued strong interest. The company had said it is unaware of reasons for the recent sharp rise in its share price and volume, in response to an unusual market query (UMA) by Bursa Malaysia.

Source: The Edge