KLCI down for 10th consecutive day; ringgit weakens

KLCI down for 10th consecutive day; ringgit weakens
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KUALA LUMPUR (Oct 2): The FBM KLCI dropped 0.8 point to end at 1,754.78 points while the ringgit weakened against the US dollar as foreign selling continued on US interest rate hike bets.

Telekom Malaysia Bhd and British American Tobacco (M) Bhd share losses dragged down the KLCI as both KLCI-linked stocks fell among Bursa Malaysia major decliners.

Across Bursa Malaysia, there were 501 decliners versus 276 advancers. A total of 2.23 billion shares worth RM1.74 billion were traded.

“The weakness of the KLCI is due to the renewed foreign fund outflow and the market will continue to trend in a negative way in a couple of days due to the lack of fresh leads,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

The KLCI posted losses for the 10th consecutive trading session today.

Earlier today, TA Securities Holdings Bhd wrote in a note that "as technical indicators for the local benchmark index turn more bearish following the sell-off for the past nine consecutive trading days (ended last Friday), sentiment is likely to stay weak, dampened by the deleveraging of the US government's balance sheet which strengthens the outlook for rising US interest rates ahead, hence encouraging foreign portfolio outflows back to developed markets."

Such sentiment has weakened the ringgit. At the time of writing, the  
the ringgit had depreciated to 4.2343 against the US dollar.

The ringgit has weakened against the US dollar from 4.1888 on Sept 18 this year.