Market Close KLCI down 12.07pts on 1MDB probe

by **Cals** Fri 22 Jul 2016, 01:34

Market Close

[size=28]KLCI down 12.07pts on 1MDB probe

By Tan Siew Mung / theedgemarkets.com | July 21, 2016 : 6:25 PM MYT
KUALA LUMPUR (July 21): The FBM KLCI fell 12.07 points or 0.7% on news U.S. prosecutors are planning to seize more than US$1 billion (RM4.04 billion) worth of assets, which they alleged is linked to money stolen from 1Malaysia Development Bhd (1MDB).

At Bursa Malaysia, the KLCI closed at 1,657.54 points, the index's intraday low. Analysts said the KLCI fell on foreign selling.

Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew said foreign funds were selling Malaysian stocks, due to 1MDB concerns. “This is just a near-term knee-jerk reaction," Pong told theedgemarkets.com.

Reuters reported U.S. prosecutors are trying to seize the assets which they said are tied to money stolen from the Malaysian state fund, overseen by the prime minister and used to finance "The Wolf of Wall Street" film, as well as to buy property and works of art.

The U.S. Department of Justice said US$681 million from a 2013 bond sale by sovereign wealth fund 1MDB was transferred to the account of "Malaysian Official 1". He is described in court papers as "a high-ranking official in the Malaysian government, who also held a position of authority with 1MDB".

Across Bursa Malaysia, there were 649 decliners versus 202 gainers. Volume was 1.81 billion shares, valued at RM1.7 billion.

Top gainer was Panasonic Manufacturing Malaysia Bhd, while leading decliner was Genting Bhd.

The most active stocks included Borneo Oil Bhd and newly-listed Dancomech Holdings Bhd.

Across Asian share markets, Japan’s Nikkei 225 rose 0.77%, while Hong Kong's Hang Seng gained 0.54%.

Reuters reported Asian stocks generally rose today, helped by a recovery in global oil prices, while the dollar strengthened against the safe-haven yen on resurgent expectations of a U.S. interest rate hike this year.
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