Market Close KLCI declines on Asian share losses

by **Cals** Mon 18 Jan 2016, 03:21

Market Close

[size=28]KLCI declines on Asian share losses

By Chester Tay / theedgemarkets.com | January 15, 2016 : 5:54 PM MYT

KUALA LUMPUR (Jan 15): The FBM KLCI fell 4.89 points or 0.3% after reversing gains in the final trading hour, amid Asian equity losses.

At 5pm, the KLCI closed at 1,628.55 points, after rising to an intraday high at 1,639.12.

Across Asia, the spotlight was on China shares. The Shanghai Composite fell 3.55%, while Hong Kong's Hang Seng declined 1.5%.

Japan’s Nikkei 225 fell 0.54%, while South Korea's Kospi dropped 1.11%.

Reuters reported Asian stocks slumped to three and a half year lows on Friday, as brief gains earlier in the session gave way to renewed pressure on oil prices and disappointing Chinese data, ratcheting up investor concerns about the global economy.

In Malaysia, a Mercury Securities analyst told theedgemarkets.com that sentiment within the share trading community was not exciting, judging from the total trading volume today.

“However, the ringgit seems stable to me. I suppose the market is being pressured by external factors,” he said.

Bursa Malaysia saw 1.88 billion shares, worth RM1.76 billion, traded. There were 325 gainers versus 580 decliners, while 315 counters remained unchanged.

Panasonic Manufacturing Malaysia Bhd ([You must be registered and logged in to see this image.] Valuation: 2.10, Fundamental: 3.00) led gainers, while top decliner was British American Tobacco (M) Bhd ( Valuation: 1.50, Fundamental: 1.35).

Instacom Group Bhd ([You must be registered and logged in to see this image.] Valuation: 0.20, Fundamental: 1.95) was the most actively-traded counter, with some 59 million shares done.

In currency markets, the ringgit weakened to 4.3968 against the US dollar. The ringgit tracks prices of crude oil, which forms a crucial component of the Malaysian economy and government revenue.

Reuters reported the collapse in oil prices at near US$30 a barrel had spooked financial markets, as investors worried about the health of the global economy, with a slowdown in China and volatility in its markets, making for a nervous start to the year.

(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.)
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