Thursday 28 Mar 2024
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KUALA LUMPUR (Apr 28): The KLCI vacillated between gains and losses before trading almost flat ahead of the two-day US Federal Reserve's policy meeting beginning today. The meeting may offer clues on the timing of US' interest rate hikes, which will affect world fund flow and stock markets.

At 9:13am, the KLCI rose 0.88 point or 0.05% to 1,860.46 on gains in stocks like Tenaga Nasional Bhd and PPB Group Bhd.
 
Hong Leong Investment Bank Bhd analyst Nick Foo Mun Pang said "overall sentiment remains cautious" as investors evaluated the impact of the US' interest rate policy and Malaysia's on-going first quarter financial reporting season.  

Bursa Malaysia saw some 180 million shares worth RM59 million changed hands. There were 138 gainers versus 131 decliners.

Top gainer was United Plantations Bhd while Petronas Gas Bhd led decliners. The most-active stock was Luster Industries Bhd

In currency markets, the ringgit strengthened against the US dollar at 3.5498 and compared to the Singapore dollar, the ringgit appreciated to 2.6734. The ringgit has strengthened after Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz ruled out last week the need to reduce interest rates to support the economy.

Across Asian share markets today, Japan's Nikkei 225 gained 0.6% while South Korea's Kospi erased earlier gains to fall 0.25%.

Reuters reported that Asian stocks scaled fresh seven-year peaks on Tuesday as Apple's upbeat earnings offset underlying caution ahead of the Federal Reserve's policy meeting scheduled to start later in the session.

Analysts expected no change in policy stance from the two-day Federal Open Market Committee meeting starting later on Tuesday, as recent domestic data have been weaker than forecast and a strong dollar has crimped export activities.

Market expectations for an interest rate increase have been pushed further down the road, with few investors now expecting a rate hike in June and most predicting a move later this year.

 

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