Thursday 28 Mar 2024
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KUALA LUMPUR (July 28): The FBM KLCI remained in negative territory at mid-morning 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 10.02am, the FBM KLCI was down 4.31 points to 1,659.25.

The top losers included British American Tobacco (M) Bhd, Dutch Lady Milk Industries Bhd, Genting Bhd, Fraser & Neave Holdings Bhd, Amway Holdings (M) Bhd, Lafarge Malaysia Bhd, Heineken Malaysia Bhd, Malaysia Airports Holdings Bhd, Public Bank bhd and Ajiya Bhd.

The actives included PDZ Holdings Bhd, TH Heavy Engineering Bhd, Sumatec Resources Bhd, Borneo Oil Bhd, Asia Media Group Bhd and Genting.

The gainers included Panasonic Malaysia Manufacturing Bhd, Ajinomoto (Malaysia) Bhd, Hong Leong Industries Bhd, Hong Leong Bank Bhd, BIMB Holdings Bhd and Ireka Corporation 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.

Hong Leong IB Research Bursa Malaysia should receive well amid news of Fed’s positive view on the US economy (with no strong signals of tightening bias) and higher-than-expected stimulus package by Japan’s government.

“Sentiment will also be boosted by hopes of more stimulus measures by Malaysian government as well as policy easing by BNM to stimulate slowing economy.

“However, the ongoing oil price consolidation, the development from the 1MDB saga coupled with expectations of another lackluster Aug reporting season may cap strong upside ahead,” it said.

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