KUALA LUMPUR (March 9): The FBM KLCI fell 8.12 points or 0.5% after
stronger-than-expected US private sector job data led to expectation of near term US interest rate hikes.

US rate hike sentiment does not bode well for Asian markets in anticipation that investors will shift their money into US dollar denominated assets. At Bursa Malaysia, the KLCI closed at its intraday low at 1,717.42 points on foreign selling.

Malaysian shares and the ringgit also faltered after crude oil prices fell 5% on Wednesday. Today, the ringgit weakened to 4.4605 against the US dollar at 5.18pm.

“Foreign investors have been buying into the Malaysian market over the past few months. Today’s performance signals healthy profit-taking,”
Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

Across Bursa Malaysia, there were 345 gainers and 558 decliners. A total of 3.36 billion shares worth RM2.47 billion were traded.

Asian share markets fell on crude oil and US rate cues. Hong Kong’s Hang Seng declined 1.18% while South Korea’s Kospi dipped 0.21%.

Reuters reported that the dollar stood firm in Asia on Thursday and bond yields spiked after super-strong US jobs data made a rate hike a near certainty, while oil struggled to find its footing after US stockpiles swelled past all expectations.

The ADP employment report showed US private payrolls surged by 298,000 last month.