KLCI erases losses amid Brexit uncertainty

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KUALA LUMPUR (June 28): The FBM KLCI rose 4.52 points or 0.28% on bargain hunting and as the index tracked gains in certain Asian share markets.

At 5pm, The KLCI ended at 1,634.04 points. The index erased losses from an intraday low of 1,620.94 as investors bargain hunted for beaten-down Malaysian stocks amid uncertainties on the UK's European Union (EU) exit (Brexit).

Across Asia, Japan's Nikkei 225 was 0.09% higher while South Korea's Kospi rose 0.49%. Hong Kong's Hang Seng fell 0.27%.

Reuters reported that Asian stocks rose for the first time in three days on Tuesday while sterling and other currencies advanced as investors scooped up beaten-down assets after Britain's vote to exit the EU stunned financial markets.

Policymakers from Japan to China also vowed to protect their economies and markets from the destabilising impact of Brexit.

In Malaysia, Mercury Securities Sdn Bhd research head Edmund Tham told theedgemarkets.com via telephone that the stock market was stabilising.

"The stock market took Brexit too badly (earlier). The stock market is stabilising," Tham said.

He, however, said it was still difficult to quantify the impact of Brexit at the moment. "There are too many uncertainties. When there is more news flow, then only investors can really react on it," he said.

Bursa Malaysia saw 528 advancers versus 268 decliners. A total of 1.47 billion shares valued at RM1.61 billion changed hands.

Top gainer was Fraser & Neave Holdings Bhd while leading decliner was British American Tobacco (Malaysia) Bhd. Vivocom International Holdings Bhd was the most-actively traded counter.