FBM KLCI - likely to extend downtrend
Stocks on Bursa Malaysia ended lower last Friday on continued sell down by foreign funds on the back of volatility in the Chinese yuan, falling oil prices, and the softer ringgit. China’s devaluation of the yuan continued to impact regional markets and currencies coupled with the fall in commodity prices, the local bourse failed to defend its crucial psychological level of 1,600 points. The FBM KLCI fell 24.8 points to close at 1,596.82, after fluctuating between 1,590.57 and 1,626.90 throughout the day. On a weekly basis, the benchmark index fell 85.83 points from 1,682.85 on extensive selling. Losers trounced gainers by 782 to 148, while 249 counters were unchanged. Weekly turnover rose to 10.26 billion units worth RM10.76 billion from previous week’s 7.38 billion units worth RM7.99 billion.
Stocks on Bursa Malaysia snapped its losing streak to end higher yesterday on technical rebound following the release of positive second quarter 2015 gross domestic product (GDP) figures. The second quarter GDP growth of 4.9% was better than market expectation of 4.5%. The FBM KLCI finished at 1,621.62, up 11.69 points, or 0.73%, after fluctuating between 1,605.46 and 1,626.86 throughout the day. The rebound was led by gains in the finance counters. Gainers outpaced losers by 714 to 217 with 252 counters unchanged. Total volume fell to 1.86 billion units valued at RM2.21 billion from 2.49 billion units valued at RM2.29 billion on Wednesday.
Stocks on Bursa Malaysia closed lower across the board yesterday as the ringgit fell past the 4.000 level to the US dollar on continued foreign selling after China devalued its currency. This marks the weakest the ringgit has seen since 1998, making the current rate of RM4.0275 to the US dollar a 17-year low. China's move had routed Asian share markets and currencies. The FBM KLCI fell 26.78 points or 1.64% to 1,609.93 after hitting an intra-day low of 1,603.26. Losers led gainers by 973 to 96 with 165 counters unchanged. Total volume rose to 2.49 billion units valued at RM2.29 billion from Tuesday’s 1.99 billion units valued at RM2.07 billion.
Stocks on Bursa Malaysia closed lower yesterday on the back of the weakening ringgit and tracking the regional peers after China’s central bank devalued its yuan by 2%. Asian shares erased earlier gains following positive lead from Wall Street’s overnight rally as investors weighed China’s surprise move to allow its currency to fall against the US dollar to boost export. At close, the FBM KLCI fell 17.66 points or 1.07% to 1,636.71 after moving between 1,635.77 and 1,661.62 throughout the day. Losers led gainers by 529 to 290 with 346 counters unchanged. Total volume rose to 1.99 billion units valued at RM2.07 billion from Monday’s 1.91 billion units valued at RM1.99 billion.
Stocks on Bursa Malaysia closed lower across the board yesterday on persistent selling pressure, particularly in heavyweight counters, dragged the benchmark index to close sharply lower as investors pulled funds amid concern about the political scandal enveloping Prime Minister Najib Abdul Razak and the worsening economic outlook. External factors such as the Chinese economic slowdown, prospects of the Federal Reserve’s interest rate hike in September and bearish commodities prices also worsen the sentiments. The FBM KLCI fell 28.28 points or 1.68% to close at 1,654.37, after fluctuating between 1,649.12 and 1,672.57 throughout the day. Decliners overwhelmed advancers by 923 to 94 with 174 counters unchanged. Total volume rose to 1.91 billion units valued at RM1.99 billion from 1.86 billion units valued at RM1.79 billion on Friday.