KLCI extends losses on Greece debt, 1MDB probe


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KUALA LUMPUR (July 7): The FBM KLCI lost 4.75 points or 0.3% to finish at 1,712.3, on Greece debt concerns and Malaysia’s political uncertainty.

Malaysia’s political uncertainty comes at a time when investigation on 1Malaysia Development Bhd (1MDB) is in progress, amid allegations some US$700 million (RM2.67 billion) was deposited into Prime Minister Datuk Seri Najib Tun Razak's bank accounts.

At 5pm, the KLCI fell on losses in stocks like Petronas Chemicals Group Bhd and AMMB Holdings Bhd. Both stocks ended among Bursa Malaysia's top decliners.

“There are challenges faced both domestically and externally. The political environment is uncertain and the situation in Greece has not come to any resolution," a dealer told theedgemarkets.com.

Yesterday, the KLCI fell 17.19 points to close at 1,717.05.

Today, Reuters reported Greek Prime Minister Alexis Tsipras is expected to present new proposals to an emergency euro zone summit on Tuesday, under pressure from European leaders to come up with credible ideas, as his country's banks face potential meltdown.

With Greek lenders down to their last few days of cash and the European Central Bank tightening the noose on their funding, Tsipras must persuade the bloc's other 18 leaders, many of whom are exasperated with five years of crisis, to open negotiations fast on a new loan to rescue Greece.

Malaysian shares tracked Asian equity losses. Hong Kong's Hang Seng fell 1.03%, while South Korea’s Kospi was down 0.66%.
Japan’s Nikkei 225 however, rose 1.31%.

The ringgit was also closely watched, after it weakened to a fresh intraday level of 3.8220 against the US dollar earlier today.

At the time of writing, the ringgit was traded at 3.8073 against the US dollar.

Overall, Bursa Malaysia saw 1.69 billion shares, valued at RM1.73 billion, traded. There were 466 decliners and 314 gainers.

Top gainers included British American Tobacco (M) Bhd and United Plantations Bhd, while the most-active stocks included Scan Associates Bhd and Jaks Resources Bhd.

Among top decliners, AMMB fell as much as 19 sen or 3% to RM5.67, on news the special task force that is investigating the alleged fund transfer into Najib's bank accounts, had frozen six accounts.

At 5pm, AMMB settled at RM5.70, with some three million shares done, to become the 7th largest decliner across the bourse.
The Malaysian Insider, quoting a joint statement by Attorney-General Tan Sri Abdul Gani Patail, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz, Inspector General of Police Tan Sri Khalid Abu Bakar and Malaysian Anti-Corruption Commission chief commissioner Tan Sri Abu Kassim Mohamed, reported the task force also seized documents linked to 17 bank accounts at two banks, for further investigation.