KUALA LUMPUR (July 28): The FBM KLCI fell in early trade today after several government-linked companies (GLCs) have had their credit ratings downgraded, after the recent downgrade of sovereign local-denominated bonds due to the government’s deteriorating fundamentals in the wake of slowing global growth.

At 9.01am, the FBMKLCI lost 6.84 points to 1,656.72.

The top losers included British American Tobacco (M) Bhd, Genting Bhd, Lafarge Malaysia Bhd, Hong Leong bank Bhd, Petronas Gas Bhd, Public Bank Bhd, Malaysia Airports Holdings Bhd and UMW Holdings Bhd.

Yesterday, Fitch Ratings downgraded the long-term local-currency issuer default ratings (IDRs) of national oil corporation Petroliam Nasional Bhd (Petronas), insurance companies Etiqa Insurance Bhd and Etiqa Takaful Bhd — both of which are part of the Malayan Banking Bhd group — and MNRB Holdings Bhd’s Malaysian Reinsurance Bhd by one notch.

Meanwhile, Asian stocks edged up early on Thursday after the Federal Reserve provided an positive assessment of the world's largest economy and lifted risk sentiment,according to Reuters.

The dollar sagged against its peers as some in the currency market had hoped the Fed would give a clearer indication that it could raise rates within the year, it said.

JF Apex Securities Research in a market preview today said that US markets ended mixed after the Federal Reserve kept interest rate unchanged, noted an improved economy but offered little hint of possible rate hike.

It said that earlier, European stocks were slightly higher ahead of the outcome of the Fed meeting and higher-than-expected UK economic data.

“On the local market, the FBM KLCI gained 2.14 points to 1663.56 points.
“Following the mixed performance in the US and Europe, the FBM KLCI is expected to remain sideways below the resistance of 1685 points.
“Investors would be looking at Bank of Japan's two-day meeting for market direction,” it said.