Market Close KLCI falls 13.11pts, ringgit weakens as oil tumbles

by **Cals** Thu 25 Feb 2016, 01:42

Market Close

[size=28]KLCI falls 13.11pts, ringgit weakens as oil tumbles

By Tan Siew Mung & Gho Chee Yuan / theedgemarkets.com | February 24, 2016 : 5:47 PM MYT

KUALA LUMPUR (Feb 24): The FBM KLCI fell 13.11 points or 0.8%, dragged down by Asian share market and crude oil losses.

At 5pm, the KLCI closed at its intraday low of 1,664.17. Across Asia, Japan's Nikkei 225 lost 0.85% while Hong Kong's Hang Seng shed 1.15%.

Reuters reported that oil prices slid on Wednesday, extending the sharp falls from the previous session after top exporter Saudi Arabia ruled out production cuts and industry data showed a further build in US crude stockpiles.

US crude futures were trading at US$31.25 per barrel at 0758 GMT, down 1.95% from their last settlement. International Brent futures were down around 1% at US$32.90 a barrel. Both dropped more than 5% in intra-day trading the previous day.

In Malaysia today, MIDF Amanah Investment Bank Bhd head of equity Syed Muhammed Kifni Syed Kamaruddin told theedgemarkets.com that the KLCI moved in line with regional markets.

Declining commodity prices, especially crude oil, also contributed to the KLCI's fall, according to Syed Muhammed Kifni.

"The market will continue to be affected by corporates results, which are underperforming," he said.

Bursa Malaysia saw 1.53 billion shares valued at RM1.51 billion traded. Decliners beat gainers at 601 versus 229.

The top gainers included Kuala Lumpur Kepong Bhd and PPB Group Bhd. The leading decliner was Dutch Lady Milk Industries Bhd.

The most-active stocks included APFT Bhd and KNM Group Bhd.

Among decliners, Kossan Rubber Industries Bhd fell to an intraday low of RM6.69 before closing unchanged at RM6.75.

Kossan shares fell earlier despite the company reporting a higher net profit at RM55.21 million in the fourth quarter ended Dec 31, 2015 from RM37.93 million a year earlier. Full-year net profit rose to RM203.26 million from RM145.6 million a year earlier.

Analysts said Kossan investors could have taken the cue from the recent ringgit strengthening and crude oil price gains.

"The rebound in ringgit and crude oil prices recently has dragged down Kossan's share price. Investors are of the view that the stronger ringgit will erode its earnings," an analyst told theedgemarkets.com over telephone.

Today, the ringgit weakened to 4.224 against the US dollar, tracking lower crude oil prices.

The ringgit tracks prices of crude oil as the commodity forms a crucial portion of the Malaysian economy and government revenue.
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