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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 theedgemarkets.com 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

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