FBM KLCI recoups losses as Brexit fears ease

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KUALA LUMPUR (Jun 27): The FBM KLCI recouped most of the day’s losses after falling as much as 15.8 points or 0.97%, as Brexit fears were seen as a short-term shock.

The Malaysian market was among a few regional markets that closed lower today. It ended 0.28% or 4.53 points lower at 1629.52.

Inter-Pacific Research Sdn Bhd’s head of research Pong Teng Siew said the FBM KLCI will be well-supported above 1,600, as the impact of Brexit is long term.

A total of 1.27 billion sharesworth RM1.3 billion were traded, with decliners leading gainers by 457 to 295.

Vivocom International Holdings Bhd, whose chief executive officer Datuk Seri Dr Yeoh Seong Mok is reportedly seeking early retirement, was the most actively-traded stock. It lost 8.16% to 22.5 sen on a volume of 66.09 million shares.

Panasonic Manufacturing Malaysia Bhd (-1.01%), Lafarge Malaysia Bhd (-2.88%) and Petron Malaysia Refining & Marketing Bhd (-5.64%) were among top losers, while Ajinomoto Malaysia Bhd (+2.98%) and Batu Kawan Bhd (+1.47%) were top gainers.

Outside Malaysia, Japan’s Nikkei led gains among major Asian bourses, closing up 2.4%. Chinese markets also held well, with the Shanghai and Shenzhen composite rising 1.45% and 2.27% respectively. Elsewhere, South Korea’s Kospi finished flat at 1,926.85.

The ringgit, which weakened further against the U.S. dollar to 4.11 today, regained some losses to close at 4.09. Brent crude oil prices also steadied at US$48.64 per barrel.

According to Reuters, market participants better absorbed the Brexit shock and opined that Britain leaving the EU would have a limited impact on global fuel demand.