Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 20): The FBM KLCI closed 5.1 points or 0.31% lower today after the US Federal Reserve raised interest rates on Wednesday and maintained most of its guidance for additional increases in the next two years. Crude oil's price drop also hit stock-market sentiment.

The Federal Reserve's interest rate guidance dashed global investors' hope for a more dovish US monetary policy outlook. At Bursa Malaysia today, the KLCI closed at 1,650.56 at 5pm.

Across Asian share indices, Japan's Nikkei 225 closed 2.84% lower while South Korea's Kospi fell 0.9%. In China, Hong Kong's Hang Seng dropped 0.94% while the Shanghai Stock Exchange Composite declined 0.52%.

Reuters reported that the Federal Reserve raised key overnight lending rate rates by 0.25% as expected to a range of 2.25% to 2.5%. It was reported that US stocks declined sharply on Wednesday after the Federal Reserve's forecast of fewer interest-rate increases in 2019 fell short of investors' hopes of a more dovish monetary policy.

It was reported that Asian shares slid on Thursday after the Federal Reserve raised rates and kept most of its guidance for additional hikes next two years, dashing investor hopes for a more dovish policy outlook.

In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the research firm concurred with the view on the negative sentiment that spread across regional stock markets after the Federal Reserve announced its interest rate guidance.

Leong also noted the impact of crude oil's price drop on Malaysian shares. "Renewed volatility in crude oil prices also led Petronas-linked companies such as Petronas Gas Bhd and Petronas Dagangan Bhd to be among the biggest losers on the bourse today," he said.

Petronas Gas and Petronas Dagangan shares fell 20 sen each to close at RM19 and RM25.40 respectively.

Reuters reported that crude oil prices fell about 3% on Thursday, heading back towards their lowest levels for more than a year on worries about oversupply and the outlook for energy demand as stock markets tumbled following a US interest rate rise.

It was reported that US light crude oil fell US$1.61 (RM6.72) a barrel, or 3.3%, to a low of US$46.56 and was trading around US$46.70 by 0845 GMT. It was reported that North Sea Brent was down US$1.60, or 2.8%, at US$55.64 a barrel.

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