Market Close KLCI loses 6.34 pts as ringgit weakens in anticipation of possible Fitch downgrade

by **Cals** Sat 27 Jun 2015, 19:33

Market Close
KLCI loses 6.34 pts as ringgit weakens in anticipation of possible Fitch downgrade

KUALA LUMPUR (June 26): The benchmark FBM KLCI closed down 0.37% or 6.34 points today to finish at 1,710.47 points, as the ringgit fell to 3.7680 against the US dollar.
At time of writing, the ringgit was also trading at 2.8012 against the Singapore dollar.
According to Reuters, the ringgit’s weakening was on concerns that Fitch Ratings may downgrade Malaysia’s credit rating in their upcoming report, partly as a result of debts run up by state-owned strategic investment fund1Malaysia Development Bhd.
“Most emerging Asian currencies slid today to notch weekly losses as investors shied away from riskier assets while Greece stood on the brink of default, and economic data strengthened expectations that US interest rates will rise later this year,” said Reuters.
Overall, the KLCI saw a total of 1.35 billion shares, valued at RM1.43 billion, traded during the day.
Losers outweighed gainers, with 441 losers against 345 gainers, while 320 counters remained unchanged.
Among today’s gainers were KLCC Stapled Securities ([You must be registered and logged in to see this image.] Financial Dashboard), Telekom Malaysia Bhd ([You must be registered and logged in to see this image.]Financial Dashboard), PPB Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Tenaga Nasional Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) and IHH Healthcare Bhd ([You must be registered and logged in to see this image.] Financial Dashboard).
The day’s decliners included MISC Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Astro Malaysia Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Westports Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Astro Malaysia Holdings Bhd, CIMB Group Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) and Malayan Banking Bhd ([You must be registered and logged in to see this image.] Financial Dashboard).
The most actively-traded stock today was KNM Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) with about 43.51 million shares changing hands.
Regionally, Japan’s Nikkei closed down 0.31%, Hong Kong’s Hang Seng index closed down 1.78%, while South Korea’s KOSPI closed up 0.25%.
Affin Hwang Investment Bank vice president and head of retail research Datuk Dr Nazri Khan said that following the bearish performance of global stocks, the FBM KLCI is expected to stage further correction with 1,700 as the immediate target, weighed down by Greece's failed negotiations, the ringgit’s renewed weakness and negative global data.
“Overall, we expect the local market to continue be trapped in the two-month downtrend channel ... With a lack of price catalysts and the on-going domestic government-linked companies (GLC) saga, market sentiment is likely to remain lacklustre in this coming week,” he said in a note today.