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Thursday, May 24, 2018

Market Daily Report: FBM KLCI down 28.59 points as Malaysia policies, US-China trade take centre stage

KUALA LUMPUR (May 24): The FBM KLCI fell 28.59 points or 1.6% as foreign selling of Malaysian shares persisted and investors evaluated the new Malaysian Government's policies.
The evaluation has led to expectations that credit rating agencies may revise their ratings for the country amid concerns on the nation's debt management.

Malaysian shares could have also taken cue from the US' national security investigation into car and truck imports. Reuters reported that Asian shares fell on Thursday after the US government launched a national security probe into car imports that could lead to new tariffs, and President Donald Trump's comments suggested setbacks in US-China trade talks.

At Bursa Malaysia, the KLCI closed at 1,775.66 points on losses in KLCI-linked stocks including Malayan Banking Bhd and Public Bank Bhd.

On the KLCI, TA Securities Holdings Bhd senior technical analyst Stephen Soo said TA expects the market downturn to be a short-term event.

“Stocks wise, the telcos, banks and utilities have been pulling down the index (KLCI). It will take a while for the market to stabilise as investors will be monitoring policies that are being announced (by the new government).

“The market is currently enduring short-term pain, but it is a necessary pain to endure for the longer term greater good,” Soo told

Across Bursa Malaysia, 2.87 billion shares worth RM3.86 billion were traded. The small-cap index fell 148.53 points or 1.03% to close at 14,312.09 points.

Malaysian shares fell with Asian stock markets. Japan’s Nikkei 225 was down 1.11%, South Korea’s Kospi fell 0.24% while China's Shanghai Stock Exchange Composite dropped 0.45%.

Reuters quoted Shane Oliver, chief economist and head of investment strategy at AMP Capital as saying in Sydney: "There's a lot of noise around Donald Trump, China-US trade, the auto imports now, and then the Korean summit, and all these things are just weighing on investors at the moment.
"I think we probably would have seen a decent day in Asian markets were it not for these ongoing geopolitical worries because the minutes from the Fed's last meeting were relatively benign."

Source: The Edge

Wednesday, May 23, 2018

Market Daily Report: FBM KLCI falls 40.78 points to intraday low

KUALA LUMPUR (May 23): The FBM KLCI fell 40.78 points or 2.21% to close at its intraday low on foreign selling of Malaysian shares on expectation credit rating agencies may revise their ratings for the country.

Hong Leong Investment Bank Bhd head of retail research Loui Low told such sentiment was due to a confluence of factors, which include concerns on the nation's debt management and a possible shortfall in tax collection after the government announced that the goods and services tax rate will be reduced from 6% to 0% effective June 1 this year.

Today, Low said. “I think it is a matter of expectations versus execution now." He added that corporate results have also dampened investor sentiment.

At 5pm, the KLCI closed at 1,804.25 points. Across Bursa Malaysia, volume stood at 2.69 billion shares valued at RM3.34 billion.

Several KLCI component counters fell among Bursa Malaysia top decliners. Axiata Group Bhd fell 64 sen to RM4.43 while CIMB Group Holdings Bhd dropped 43 sen to RM6.22.
The Malaysian stock market also reflected the cautious environment across Asian equities. Such sentiment followed news reports quoting US President Donald Trump as saying he was not pleased with the US-China trade talks.

Among Asian share markets, Japan’s Nikkei 225 fell 1.18% while South Korea's Kospi rose 0.26%. In China, the Shanghai Stock Exchange Composite and Hong Kong’s Hang Seng were down 1.41% and 1.82% respectively.

Source: The Edge