Market Close KLCI, Asian markets down as oil falls below US$28

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KLCI, Asian markets down as oil falls below US$28

By Yimie Yong / theedgemarkets.com   | January 18, 2016 : 5:52 PM MYT

KUALA LUMPUR (Jan 18): The FBM KLCI fell 5.91 points or 0.4%, tracking losses in Asian share markets as crude oil prices fell below US$28 per barrel.
At 5pm, the KLCI closed at 1,622.64 points on losses in stocks like Hong Leong Financial Group Bhd ([You must be registered and logged in to see this image.] Valuation: 2.55, Fundamental: 2.20) and Astro Malaysia Holdings Bhd ( Valuation: 2.10, Fundamental: 1.10). The KLCI had cut losses after falling to an intraday low of 1,608.81 points.
Across Asia, Japan's Nikkei 225 was down 1.12%, Hong Kong's Hang Seng declined 1.45% while South Korea's Kospi dipped 0.02%.
Reuters reported that Asian shares slid to their lowest levels since 2011 on Monday after weak US economic data and a massive fall in oil prices stoked further worries about a global economic downturn.
Crude prices faced fresh pressure after international sanctions against Iran were lifted over the weekend, allowing Tehran to return to an already over-supplied oil market.
Brent oil futures fell below US$28 per barrel, touching their lowest level since 2003. MSCI's broadest index of Asia-Pacific shares outside Japan fell to its lowest since October 2011 and was last down 0.5%.
In Malaysia, JF Apex Securities Bhd head of research Lee Chung Cheng told theedgemarkets.com that the stock market today was mainly affected by weaker US economic data, lower oil prices, and unfavourable economic data expected from China.
"The stock market is expected to be volatile for the week," Lee said.
The US industrial output drop in December 2015 raised concerns on the nation's economic growth.
China's fourth-quarter and full-year 2015 gross domestic product figures are expected to be released tomorrow (Jan 19).
Today, Bursa Malaysia saw 776 decliners versus 190 advancers. A total of 2.13 billion shares valued at RM1.87 billion changed hands.
Enra Group Bhd and Top Glove Corp Bhd ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 2.70) were among top gainers while the leading decliner was British American Tobacco (M) Bhd ( Valuation: 1.50, Fundamental: 1.35).
KLCI-linked put warrant FBMKLCI-HK was the top active entity.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)