Market Close KLCI up on Tenaga; ringgit strengthens

by **Cals** Wed 23 Mar 2016, 05:42

Market Close

[size=28]KLCI up on Tenaga; ringgit strengthens

By Supriya Surendran / theedgemarkets.com | March 22, 2016 : 6:14 PM MYT

KUALA LUMPUR (March 22): The FBM KLCI rose 6.39 points or 0.4% following sharp 11th-hour gains, as Tenaga Nasional Bhd shares rose.

The KLCI finished at 1,724.75 at 5pm. State-controlled utility Tenaga added 52 sen to RM14 to become Bursa Malaysia's second-largest gainer.

Bursa Malaysia saw 2.42 billion shares, valued at RM2.88 billion, traded. There were 396 gainers against 473 decliners.

Tenaga, the 10th most-active stock, saw some 34 million shares traded. Tenaga shares rose, following a report today by The Edge Financial Daily (Edge FD), which could have allayed 1Malaysia Development Bhd (1MDB) bailout concerns.

Edge FD, quoting sources, reported 1MDB was due to complete the sale of its energy unit, Edra Global Energy Bhd, to China General Nuclear Power Corp by the end of the week, following the completion of all outstanding conditions precedent under the deal.

At Bursa Malaysia, the KLCI erased losses after volatile trades earlier. The volatility could be due to revival of US interest rate hike anticipation.

US rate hikes do not bode well for emerging Asian markets, in anticipation that investors will shift their funds back to US dollar-based assets.

Reuters reported Asian stocks seesawed on Tuesday, as hawkish comments from U.S. Federal Reserve officials clouded the monetary policy outlook in less than a week after Fed Chair Janet Yellen had set out a more cautious path to interest rate increases this year.

In Malaysia, JF Apex analyst Lee Cherng Wee told theedgemarkets.com that the share market’s performance today was in line with regional markets, which exhibited mixed results.

Japan’s Nikkei 225 was up 1.94%, while South Korea’s Kospi rose 0.35%. Hong Kong’s Hang Seng fell 0.08%.

“US markets may see some slowdown in trading, with the upcoming Good Friday public holiday over there this Friday,” Lee said.

In currency markets today, the ringgit strengthened to 4.0098 against the US dollar on crude oil gains.

The exchange rate had earlier reached its strongest intraday level at 3.9805.
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