FBM KLCI down 0.38% on Brexit woes

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KUALA LUMPUR (Jan 16): The FBM KLCI fell 6.34 points or 0.38% today after Asian shares took cue from the rejection of UK Prime Minister Theresa May’s Brexit deal at the UK Parliament on Tuesday.

At 5pm today, the KLCI closed at 1,673.08. Across Asia, Japan’s Nikkei 225 fell 0.55% while South Korea and Hong Kong stock indices erased losses to end higher. South Korea’s Kospi closed up 0.43% while Hong Kong’s Hang Seng rose 0.27%.

In Malaysia, MIDF Amanah Investment Bank Bhd head of research Mohd Redza Abdul Rahman told theedgemarkets.com that “the rebound did not happen [in the KLCI] due to profit taking on key banking and plantation stocks.”

Across Bursa Malaysia, 2.33 billion shares valued at RM1.88 billion were traded.

Top decliners included Public Bank Bhd and Tenaga Nasional Bhd as global investors digested the latest Brexit development.

Reuters reported that global share markets and the sterling weathered a UK political storm as investors wagered that London will have no choice but to delay its Brexit deadline to avoid a disorderly exit from the European Union.

It was reported that British Opposition Labour Party leader Jeremy Corbyn called a vote of no confidence in May's Government, to be held at 1900 GMT, after her Brexit plan was soundly defeated in Parliament on Tuesday. But many investors expect May to survive, and to subsequently pursue delaying the planned March 29 departure date, even as few investors have any clarity on what that would mean in the longer run.