KLCI down ahead of Bank Negara’s announcement

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KUALA LUMPUR (Sept 11): The FBM KLCI dipped 10.42 points or 0.65%, dragged down by banking stocks ahead of Bank Negara Malaysia’s announcement on its overnight policy rate (OPR) today.

At 5pm, the KLCI closed at 1,603.60 points on losses in shares like RHB Capital Bhd and Malayan Banking Bhd. Both stocks were among Bursa Malaysia’s top decliners.

Despite the KLCI’s losses, Bursa Malaysia saw more gainers at 462 entities against 352 decliners. A total of 2.23 billion shares worth RM 1.86 billion were traded.

The top gainer was Lay Hong Bhd while the most-active counter was Sumatec Resources Bhd.

The FBM Small Cap Index rose 126.61 points or 0.88% to 14,451.86. The index comprises companies within the top 98% portion of the Bursa Malaysia Main Market but excludes FBM 100 entities.

An analyst told theedgemarkets.com that “the FBM Small Cap Index rose in tandem with the rebound in second-liner stocks”.

Asian share markets fell. Japan’s Nikkei 225 dipped 0.19%, Hong Kong’s Hang Seng declined 0.27% while South Korea’s Kospi shed 1.06%.

Reuters reported that global stocks around the world slipped into the red on Friday but remained on track for their biggest weekly gain in eight as investors grappled with the possibility of US interest rates rising next week.

While next Thursday’s eagerly anticipated decision from the Federal Reserve hangs very much in the balance, meaning the potential for market volatility remains high, stocks and government bond yields have moved higher this week.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)