Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (July 26): The FBM KLCI closed down 8.62 points or 0.52% at its intraday low today, tracking the fall across Asian share markets after the European Central Bank (ECB) on Thursday disappointed investors, who had anticipated an immediate interest rate cut. 

Such sentiment led to expectation that the widely-anticipated US interest rate cut next week may be smaller than forecast. Lower ECB and US interest rates bode well for Asian markets, on expectation global fund managers will shift their money into higher-yielding Asian assets, such as stocks, bonds and currencies.

At Bursa Malaysia today, the KLCI closed at 1,647.96 at 5pm, amid a broad-based  retreat across the exchange. The index for small-capitalisation stocks fell 14.03 points or 0.1% to 13,698.03. 

Across Asian stock indices, Japan’s Nikkei 225 closed down 0.45%, South Korea’s Kospi fell 0.4%, while Hong Kong’s Hang Seng declined 0.69%.

CNBC reported stocks in Asia saw broad declines on Friday, amid expectations that the US Federal Reserve could be less aggressive than expected with monetary policy, when it meets next week.

“That came after ECB President Mario Draghi said the risk of a recession in the region was low, despite earlier signalling a rate cut and more monetary easing ahead. Some traders took this to mean the central bank would not be as aggressive in its easing measures and that the Fed could follow suit, when it meets next week,” CNBC reported. 

Vishnu Varathan, head of economics and strategy at Mizuho Bank, was quoted as telling CNBC: “The ECB disappointed markets looking for a ‘whatever its takes’ moment; as the shortfall on conviction, commitment and details overtook the dovish stance and easing bias."

Across Bursa Malaysia today, decliners outnumbered gainers at 457 stocks to 340, respectively. A total of 2.56 billion shares, worth RM2.05 billion, were traded. 

Top decliners included British American Tobacco (M) Bhd, United Plantations Bhd and Public Bank Bhd. Top gainers included G3 Global Bhd, Genting Malaysia Bhd and MSM Malaysia Holdings Bhd.

      Print
      Text Size
      Share