KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
KUALA LUMPUR (Sept 19): The FBM KLCI ended 3.21 points or 0.2% lower today after the US Federal Reserve cut interest rates on Wednesday but indicated a higher bar to further reductions. The ringgit weakened against such sentiment.
In theory, interest rate cuts are good for the stock market and bad for currencies. At 5pm, the KLCI closed at 1,596.28.
In currency markets, the ringgit weakened to 4.1912 versus the US dollar at the time of writing
Reuters reported that Asian shares extended declines on Thursday after the Federal Reserve signalled a higher bar to further easings, while the Bank of Japan (BOJ) also held off from offering more stimulus as some had hoped.
It was reported that the Fed cut rates for the second time this year
as global growth risks intensified, forcing policymakers around the
world to step up efforts to stimulate their economies. It was reported
that earlier in the day, the BOJ kept policy steady as expected, though
there were some expectations the Japanese central bank would ramp up its
already massive stimulus.
According to Reuters, Asian equities were already on the back foot after Fed Chairman Jerome Powell took a more guarded approach to any further reductions in borrowing costs.
"The Fed cut interest rates to 1.75%-2% in a 7-3 vote but signalled further cuts are unlikely as the labour market remains strong. The rate cut was widely expected, but the split vote has raised some concern about predicting the future path of monetary policy," Reuters reported.
In Malaysia, Rakuten Trade Sdn Bhd head of research Kenny Yee said the US rate cut was widely expected, but tepid investor sentiment was fueled by factors including uncertainties on the US' future interest rate decisions besides global geopolitical tension.
Yee deemed such uncertainties as “not positive” to the market and believes these are major factors keeping investors on the sidelines.
Across Bursa Malaysia today, top decliners included Hong Leong Financial Group Bhd and Telekom Malaysia Bhd shares. Investors were also mindful of lower crude palm oil (CPO) prices and their impact on plantation-related shares.
At a glance, Bursa's website shows a broad-based drop across Malaysian CPO futures. CPO price for Oct 2019 fell the most after closing down RM16 at RM2,183 a tonne.
Among KLCI-linked plantation counters, Sime Darby Plantation Bhd closed down six sen or 1.22% at RM4.84 while IOI Corp Bhd fell two sen or 0.45% to RM4.40.
MIDF Amanah Investment Bank Bhd analyst Martin Foo Chuan Loong wrote in a note today that at this juncture, pending further development, MIDF is maintaining its negative view on the plantation sector with an unchanged CPO price forecast of RM2,090 a tonne for 2019.
"The oil palm industry has been in the limelight due to various sustainability issues. This includes being labelled as the main cause of rapid deforestation and wildlife extinction, especially from the EU. The negative perception has put palm oil in a less favourable position compared to the other rival crops despite the fact that palm oil is the most efficient and versatile oil crop," Foo said.
Source: The Edge
According to Reuters, Asian equities were already on the back foot after Fed Chairman Jerome Powell took a more guarded approach to any further reductions in borrowing costs.
"The Fed cut interest rates to 1.75%-2% in a 7-3 vote but signalled further cuts are unlikely as the labour market remains strong. The rate cut was widely expected, but the split vote has raised some concern about predicting the future path of monetary policy," Reuters reported.
In Malaysia, Rakuten Trade Sdn Bhd head of research Kenny Yee said the US rate cut was widely expected, but tepid investor sentiment was fueled by factors including uncertainties on the US' future interest rate decisions besides global geopolitical tension.
Yee deemed such uncertainties as “not positive” to the market and believes these are major factors keeping investors on the sidelines.
Across Bursa Malaysia today, top decliners included Hong Leong Financial Group Bhd and Telekom Malaysia Bhd shares. Investors were also mindful of lower crude palm oil (CPO) prices and their impact on plantation-related shares.
At a glance, Bursa's website shows a broad-based drop across Malaysian CPO futures. CPO price for Oct 2019 fell the most after closing down RM16 at RM2,183 a tonne.
Among KLCI-linked plantation counters, Sime Darby Plantation Bhd closed down six sen or 1.22% at RM4.84 while IOI Corp Bhd fell two sen or 0.45% to RM4.40.
MIDF Amanah Investment Bank Bhd analyst Martin Foo Chuan Loong wrote in a note today that at this juncture, pending further development, MIDF is maintaining its negative view on the plantation sector with an unchanged CPO price forecast of RM2,090 a tonne for 2019.
"The oil palm industry has been in the limelight due to various sustainability issues. This includes being labelled as the main cause of rapid deforestation and wildlife extinction, especially from the EU. The negative perception has put palm oil in a less favourable position compared to the other rival crops despite the fact that palm oil is the most efficient and versatile oil crop," Foo said.
Source: The Edge
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