KLCI rises on bargain hunting as Brexit takes centre stage

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KUALA LUMPUR (Jan 17): The FBM KLCI rose 4.19 points or 0.3% on bargain hunting, after the index's 13.66-point drop yesterday. The KLCI fell yesterday on renewed concerns on the UK's planned exit from the European Union (EU) and after China shares dropped sharply.

The UK's planned exit from the EU is popularly known as Brexit. The KLCI also dropped on news JP Morgan downgraded the Malaysian stock market to "neutral", from "overweight".

Today, the KLCI closed at 1,663.03 points. Inter-Pacific Research Sdn Bhd research head Pong Teng Siew told theedgemarkets.com that the KLCI's decline yesterday was an opportunity for bargain hunting by institutional investors.

“The underlying sentiment is still bullish. Liquidity will improve, but I don’t think it will last past late February or March. The market is cautious,” Pong said.

Today, Bursa Malaysia saw 1.99 billion shares, worth RM1.68 billion, traded. There were 411 gainers and 366 decliners. 

World markets have been taking cue from Brexit concerns. Reuters reported the pound hovered near three-month lows versus the dollar on Tuesday, and stocks were mostly weaker as investors waited for British Prime Minister Theresa May to lay out plans to exit the EU, amid fears Britain will lose access to the single market.

Safe-havens such as the yen, gold and treasuries, gained in turn.