Market Close Malaysian stocks end higher, bucking regional trend

by **Cals** Wed 27 Jan 2016, 05:50

Market Close

[size=28]Malaysian stocks end higher, bucking regional trend

By Meena Lakshana / theedgemarkets.com | January 26, 2016 : 5:39 PM MYT
KUALA LUMPUR (Jan 26): Malaysian stocks finished higher today, to extend gains for a second session in a row, with blue chips in the driver's seat.

At closing bell, the FBM KLCI index bucked regional trend, gaining 0.09% or 1.45 points to 1,626.66, This follows last Friday's gains of 24.29 points or 1.52% to close at 1,625.21.

Market breadth was, however, negative, with losers outpacing gainers at 719 against 214. A total of 271 counters remained unchanged. Turnover was 1.56 billion shares valued at RM1.71 billion.

Decliners were led by Top Glove Corp Bhd, Kossan Rubber Industries Bhd and Aeon Credit Service (M) Bhd, while gainers were led by United Plantations Bhd, British American Tobacco (Malaysia) Bhd and TAHPS Group Bhd.

AirAsia X Bhd was the most actively traded counter, with 60.16 million shares done.

A head of research with a local firm said the KLCI is still trading within range-bound, but a rebound could be likely during this short trading week. The local stock market was closed yesterday for Thaipusam holiday.

“To us, it (the KLCI’s performance) mainly depends on external market performance and the oil market,” he told theedgemarkets.com.

“Technically speaking, local market is slightly at the oversold stage, that’s why we say a rebound is likely but largely depends on the external market,” he said, adding that the 1,620 level and below is the firm’s “buy-into-weakness” area.

Prime Minister Datuk Seri Najib Razak being cleared of any criminal wrongdoing by the attorney-general over the RM2.6 billion donation today did not have any bearing on the market’s performance today, he added.

“Attention is not so much on domestic factors. Rather, it is on the US Federal Reserve's interest rate position, whether there are further hikes, as well as the oil price,” he added.

Attorney-General Tan Sri Mohamed Apandi Ali told a press conference today that he found no evidence to show that the RM2.6 billion donation channeled into Najib's private accounts was "an inducement or reward for doing or forbearing to do anything in relation to his capacity as prime minister".

Meanwhile, crude prices reportedly fell back below US$30 a barrel today, not far from last week's 12-year lows, snapping two days of gains for Wall Street stocks.

At the time of writing, the March 2016 futures contract for West Texas Intermediate (WTI) crude oil was trading 2.87% lower at US$29.47 per barrel, while the Brent crude oil futures contract was trading 2.89% lower at US$29.62 per barrel.

Regionally, the Hang Seng index fell 2.48% to 18,860.80 points, South Korea's Kospi was down 1.15% to 1,871.69 points, while Japan's Nikkei 225 closed 2.35% lower at 16,708.9 points.

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