KLCI, ringgit gain with oil as Brexit impact ebbs

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KUALA LUMPUR (June 29): The FBM KLCI rose 8.17 points or 0.5% on bargain hunting and as the ringgit strengthened with crude oil prices. The KLCI and ringgit gained as the immediate impact of the UK's European Union exit (Brexit) decision ebbed.

At 5pm, the KLCI closed at 1,642.21 points on gains in stocks like SapuraKencana Petroleum Bhd and RHB Bank Bhd. The KLCI reversed earlier losses after falling to an intraday low at 1,630.51 points.

The KLCI tracked Asian stock market gains. Japan's Nikkei 225 gained 1.59% while Hong Kong's Hang Seng rose 1.31%.

In currency markets, the ringgit appreciated to 4.0405 against the US dollar. Compared to the pound sterling, the ringgit strengthened to 5.4106.

Reuters reported that Asian shares were swept up in a global relief rally on Wednesday as the immediate drag from the Brexit vote began to ebb and investors wagered central banks would ultimately ride to the rescue with more stimulus measures.

Oil rose on Wednesday as financial traders poured money back into commodities following the initial shock of the UK's vote to leave the European Union, and as a potential strike in Norway and crisis in Venezuela threatened to cut supply. Brent crude futures were trading at US$48.95 (RM197.80) per barrel at 0948 GMT, up 37 cents from their last settlement.

In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that the stock market rose following gains in the US and European markets after investors digested Brexit's immediate impact.

"The impact of Brexit may not be so serious. The selling earlier might be overdone. There might be a slowdown in the economy but recession is unlikely in Asia," Wong said.

Bursa Malaysia saw 1.35 billion shares worth RM1.54 billion traded. Gainers beat decliners at 463 against 302.

Scientex Bhd was the top gainer while Malaysia Airports Holdings Bhd was among leading decliners. Vivocom Intl Holdings Bhd was the most actively-traded stock.