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Wednesday, March 22, 2017

Market Daily Report: FBM KLCI falls on Trump's policy uncertainty

KUALA LUMPUR (March 22): The FBM KLCI fell 6.37 points or 0.4%,tracking Asian share losses after a weaker overnight performance in US stock markets. World equities fell on uncertainties over US President Donald Trump's policies for the US economy.

At 5pm, the KLCI closed at 1,748.3 points after falling to its intraday low at 1,738.4 points. Across Asian share markets, Japan's Nikkei 225 declined 2.13%, Hong Kong’s Hang Seng fell 1.11% while South Korea’s Kospi was 0.46% lower.

In overnight US share trades, the Dow Jones Industrial Average fell 1.14%, S&P 500 dropped 1.24% while Nasdaq Composite was 1.83% lower.

Reuters reported that Asian stocks posted their biggest drop in two weeks on Wednesday as growing doubts about Trump's economic growth agenda prompted investors to dump risky assets and rush to safe havens such as gold and government debt.

Wall Street fell sharply on Tuesday as investors worried that Trump will struggle to deliver promised tax cuts that propelled the market to record highs in recent months, with nervousness deepening ahead of a key healthcare vote.

In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told that Trump's policies would be closely watched.

“Moving forward, investors will closely watch whether Trump will fulfill his promises on tax plans and healthcare reform," Leong said. He said investors will also closely watch prices of crude oil, which forms a crucial portion of the Malaysian economy.

Across Bursa Malaysia today, 3.16 billion shares worth RM2.75 billion were traded. Decliners hammered gainers by 605 to 328 respectively.

Yesterday, the trading volume was 4.58 billion shares.

Source: The Edge

Tuesday, March 21, 2017

Market Daily Report: FBM KLCI rises with KLK, IOI Corp as Asian shares gain

KUALA LUMPUR (March 21): The FBM KLCI rose 5.26 points or 0.3% on late buying of index-linked plantation entities Kuala Lumpur Kepong Bhd (KLK) and IOI Corp Bhd shares. The KLCI had also tracked Asian share gains.

At 5pm, the KLCI closed at 1,754.67 points after falling to its intraday low at 1,748.82 point during its final trading minutes. KLK shares added two sen to RM24.82 while IOI Corp rose two sen to RM4.70.

KLK and IOI Corp shares had earlier fallen with lower crude palm oil prices as a stronger ringgit versus the US dollar made the commodity more expensive for foreign buyers. At 5.37pm, the exchange rate was at 4.4255.

Reuters reported that benchmark palm oil futures for June delivery on the Bursa Malaysia Derivatives Exchange were down 0.3 percent at RM2,772 (US$626.16) a tonne at the midday break. Palm also tracks the movement of other related vegetable oils as they compete for a share in the global edible oils market.

In Malaysia, analysts told the stock market had gained on foreign buying. “The trading volume is still high today, though it is lower compared with yesterday’s trading volume of about six billion shares. I think the trading is also supported by positive sentiment on news that foreign investors are buying,” Mercury Securities Sdn Bhd research head Edmund Tham said.

"If investors are banking on election play, they should focus on government-linked counters as well as construction counters," Tham said.

Across Bursa Malaysia, 4.58 billion shares worth RM3.29 billion were traded. Gainers beat decliners by 496 versus 477 respectively. Yesterday, the trading volume was 6.02 billion shares.

Today, Malaysian shares had also tracked Asian equity gains. Hong Kong’s Hang Seng rose 0.37% while South Korea’s Kospi was 0.99% higher.

Reuters reported that Asian shares hit 21-month highs on Tuesday while the dollar and US bond yields were on the back foot on the prospect of a less-hawkish Federal Reserve policy trajectory.

Source: The Edge