Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 22): Malaysian economic sentiment and crude oil prices may continue to dictate the FBM KLCI today as investors eye local corporate financials.  

Equity investors may take the cue from Bank Negara Malaysia's monetary statement yesterday that the nation's economy was expected to see "more moderate growth in 2016" after expanding about 5% in 2015.
 
Although Bank Negara maintained the overnight policy rate at 3.25%, the central bank announced a cut in the statutory reserve requirement ratio from 4% to 3.5% for the banking sector effective this Feb 1.

Yesterday, the KLCI fell 17.91 points to close at 1,600.92. KLCI futures for March 2016 settled lower at 1,585 points.

Overnight, US shares rose with crude oil prices. The Dow Jones Industrial Average climbed 0.74%, S&P 500 added 0.52% while Nasdaq Composite was 0.01% higher.

Reuters reported that Wall Street staged a modest rally on Thursday as oil prices recorded their biggest gain this year and European Central Bank President Mario Draghi raised hopes of more stimulus for Europe.

Benchmark Brent futures for March delivery rose US$1.37 to settle at US$29.25 a barrel, a 4.9% gain. US crude rose US$1.18 to settle 4.2% higher at US$29.53 per barrel.

 

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