KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Market Daily Report: KLCI dragged down by selloff in Axiata and Digi after merger talks fall through
KUALA LUMPUR (Sept 10): The FBM KLCI closed lower today, dragged down by heavy selling of shares of Axiata Group Bhd and Digi.Com Bhd, following the termination of merger talks between Axiata and Telenor ASA.
The benchmark index ended the day 8.62 points or 0.54% lower at 1,595.85.
“The index today was dragged down by the termination of the Axiata-Telenor merger, with selling present for Axiata and Digi shares,” Nomura head of equity research Tushar Mohata told the theedgemarkets.com.
Telenor ASA (which is the biggest shareholder of Digi) and Axiata, called off their proposed merger last week, citing complexity of the transaction involved.
Axiata was the biggest loser on Bursa Malaysia, while Digi was the fifth largest loser.
A total of 2.19 billion shares, worth RM1.93 billion, were traded across the bourse.
In a note today, JF Apex Securities Research said the KLCI could move sideways above the 1,600-level.
“Following the mixed performance in the US and Europe, the FBM KLCI could hover sideways above the support of 1,600 points,” the research house said.
Among other Asian benchmark indexes, South Korea’s KOSPI rose 12.53 points or 0.62% to 2,032.08, while Japan’s Nikkei closed 73.68 points or 0.35% higher to 21,392.10 points.
In China, the Shanghai Composite closed 3.54 points or 0.12% lower to 3,021.20 points, while Hong Kong’s Hang Seng closed 2.28 points or 0.01% higher at 26,683.68.
Most Asian stocks swung lower today, as they are weighed down by the Chinese markets, after mainland factory-gate prices shrank at their fastest pace in three years, Reuters reported.
Official data showed China’s producer price index fell 0.8% in August year-on-year. This constitutes the sharpest decline since August 2016, signalling waning international and domestic demand, Reuters said.
Source: The Edge
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