Friday 29 Mar 2024
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KUALA LUMPUR (Jan 7): The FBM KLCI dipped 0.35% at mid-morning on Wednesday in line with the slump at regional markets, while the ringgit stayed weak against the US dollar on account of volatile crude oil prices.

At 10am, the FBM KLCI fell 6.07 points to 1,710.51.

The ringgit was down 0.78% versus the greenback and quoted at 3.5843 per US dollar.

The top losers included LPI Capital Bhd, Malayan Banking Bhd, Bursa Malaysia Bhd, UMW Holdings Bhd, Scientex Bhd, Sime Darby Bhd, Kuala Lumpur Kepong Bhd, Boustead Holdings Bhd, Guiness Anchor Bhd and CIMB Group Holdings Bhd.

The actively traded stocks included Minetech Resources Bhd, Malayan Banking Bhd, The Media Shoppe Bhd, AirAsia Bhd, Malayan United Industries Bhd and Sumatec Resources Bhd.

The gainers included British American Tobacco (M) Bhd, Karex Bhd, Lafarge Malaysia Bhd, Malaysian Pacific Industries Bhd, Petronas Gas Bhd, Coastal Contracts Bhd and AirAsia Bhd.

Asian share markets slipped while the euro hit a nine-year trough on Wednesday as collapsing oil prices and worries about the world economy drove skittish investors into the arms of safe havens such as the yen and sovereign debt, according to Reuters.

From Japan to Germany to Australia, government borrowing costs reached all-time lows as oil fell 10 percent in just two days and investors wrestled with the risk of global deflation, it said.

AffinHwang Capital Research said it anticipate the FBMKLCI and stock prices in Bursa Malaysia as a whole will be testing their supports with steady downward biases due to (1) softening of equities in major markets particularly the U.S, Europe and Japan, (2) further bearish performance of Emerging Markets as a result of continues weakening of Crude Oil prices which eventually influence and drag other commodities as well and (3) weakening of their respective currencies.

“Volatilities therefore are anticipated to surge going forward,” it said.

On the ringgit, AffinHwang said given the volatile outlook of crude oil prices in the short term, it anticipates the local currency to consolidate sideways withing the range of RM3.50 to RM3.60 to the US dollar.

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