Market Close KLCI reverses losses; ringgit strengthens
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Market Close KLCI reverses losses; ringgit strengthens
- Market Close
KLCI reverses losses; ringgit strengthens
By Ahmad Naqib Idris / theedgemarkets.com | May 6, 2016 : 5:52 PM MYTKUALA LUMPUR (May 6): The FBM KLCI rose 4.27 points or 0.3% as the ringgit strengthened ahead of the crucial US employment data today and Malaysia's Sarawak state election tomorrow.
The US employment data is closely watched as it will offer clues on the country's interest rate policy. Higher US interest rates do not augur well for emerging Asian markets like Malaysia, in anticipation that investors will shift their funds back to US dollar-based assets.
At 5pm, the KLCI closed at 1,649.36 points, after touching its intraday low at 1,633.18 points. The ringgit strengthened to 4.0043 against the US dollar, after depreciating to its intraday weakest point at 4.0190.
On the KLCI, fund managers said investors bargain hunted for beaten-down stocks, following the index's 12.49-point drop yesterday.
Today, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that the US employment data could have an impact on the KLCI, as the data would have a bearing on US interest rate expectations, ahead of the US' Federal Open Market Committee meeting next month.
“The index (KLCI) fell earlier in the day. At the current level, the valuation of the market looks rather attractive for the short term,” Wong said.
The KLCI erased losses as Asian shares fell. Japan’s Nikkei 225 fell 0.25%, while Hong Kong’s Hang Seng was down 1.66%.
Reuters reported Asian shares wallowed at one-month lows on Friday, as investors braced for the U.S. April payrolls report, after jobless claims data raised doubts over the seemingly rosy employment picture.
Meanwhile, Malaysia's 11th Sarawak state election will also be closely watched. Bernama reported the Sarawak state election would witness 227 candidates contesting for 80 seats, after two seats were won uncontested when nomination closed on April 25 this year.
Across Bursa Malaysia today, 1.58 billion shares valued at RM1.82 billion were traded. Gainers beat decliners at 426 against 346.
Nestlé (M) Bhd led gainers, while British American Tobacco (M) Bhd headed decliners. The top-active counter was R&A Telecommunications Group Bhd.
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