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Tuesday, December 20, 2016

Market Daily Report: KLCI flat, ringgit weakens as Europe attacks take spotlight

KUALA LUMPUR (Dec 20): The FBM KLCI rose 0.22 point after volatile trade while the ringgit weakened against the US dollar as investors evaluated the attacks in Germany, Switzerland and Turkey.

At Bursa Malaysia, the KLCI closed at 1,634.52 points at 5pm. The ringgit weakened to 4.4797 against the US dollar at 5:17pm.

The ringgit had earlier today weakened to a new one-year level at 4.4823 against a stronger US dollar in anticipation of further US interest rate hikes in 2017.

The 4.4823 exchange rate was last seen during the 1998 Asian financial crisis. During that year, the ringgit depreciated to its all-time weakest point at 4.8850 against the greenback.

Today, JF Apex Securities Bhd senior analyst Lee Cherng Wee said the KLCI lacked fresh catalysts. "The weak ringgit is already expected by investors, and I believe it's already factored in. Therefore, we do not see any major movement in the index today," he told

Bursa Malaysia saw 1.29 billion shares valued at RM1.41 billion traded. There were 348 gainers and 360 decliners.

Malaysian shares could have also taken the cue from recent attacks in Germany, Switzerland and Turkey. Bloomberg reported that Asian shares declined as geopolitical concerns intensified after the assassination of Russia's ambassador to Turkey and violent incidents in Germany and Switzerland.
German authorities began sifting for clues into what they called a "probable terrorist attack" on a Berlin Christmas market that killed 12 people and injured 48 others. Police were questioning a suspect arrested near the scene whom they believe to be the driver of a truck that rammed into crowds at the market in the heart of west Berlin Monday evening.

In Switzerland, three were injured during Monday's shooting, which took place after a man entered the mosque on Eisgasse at about 5:30pm local time. The victims, men aged 30, 35 and 56, have been hospitalised.

Source: The Edge

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