Market Close KLCI erases losses on crude oil amid US rate hike talk

by **Cals** Thu 19 May 2016, 00:05

Market Close

[size=28]KLCI erases losses on crude oil amid US rate hike talk

By Meena Lakshana / theedgemarkets.com | May 18, 2016 : 5:58 PM MYT

KUALA LUMPUR (May 18): The FBM KLCI rose 2.33 points or 0.1% on bargain hunting amid stronger crude oil prices. The KLCI bucked Asian share market losses amid US interest rate hike talk.

At 5pm, the KLCI closed at 1,635.72 points after falling to an intraday low at 1,621.46. Across Asian share markets, Japan's Nikkei 225 fell 0.05% while Hong Kong's Hang Seng closed 1.5% lower.

Reuters reported that Asian shares weakened on Wednesday in the wake of accelerating US inflation and comments from Federal Reserve officials that rekindled prospects of an interest rate rise as early as June.

International Brent crude futures were trading at US$49.36 (RM199.95) per barrel at 0644 GMT, 8 cents above their last settlement. US West Texas Intermediate crude futures were 11 cents higher at US$48.42 a barrel.

In Malaysia, M&A Securities Sdn Bhd research head Rosnani Rasul told theedgemarkets.com that with crude oil price gains, emerging markets would be able to offset overnight US share losses.

"According to conventional wisdom, when Wall Street tanks, we will tank too. But when oil price is steady, we will be able to break from that trend," Rosnani said.

Bursa Malaysia saw decliners led gainers by 518 to 302. Volume was 1.88 billion shares valued at RM1.99 billion.

Top gainer was British American Tobacco (M) Bhd while leading decliner was Ta Ann Holdings Bhd.

The most-active stocks included AirAsia X Bhd and newly-listed Salutica Bhd.
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