KUALA LUMPUR: Stocks on Bursa Malaysia closed higher on Wednesday as investor sentiment was galvanised by Bank Negara Malaysia Governor's remarks about 1Malaysia Development Bhd (1MDB) while the ringgit firmed up against the major currencies.
At 5pm, the KLCI was up 8.74 points or 0.53% higher to 1,644.58. Turnover was 1.67 billion shares valued at RM1.89bil. There were 467 gainers, 359 losers and 358 counters unchanged.
Datuk Muhammad Ibrahim, who took over as governor on May 1, expressed confidence the government will honour all its debt obligations, according to Bernama. He said this in response to the deadline for 1MDB to make a coupon payment on a US$1.75bil bond, due Wednesday.
His remarks saw the equities market staging a recovery and the ringgit firming up.
In a statement issued after market close, 1MDB said it came to understand that International Petroleum Investment Company (IPIC) had paid US$52.4 million of interest due on Wednesday in respect of the US$1.75bil fixed rate 5.99% notes due 2022 issued by 1MDB Energy Ltd.
“Whilst 1MDB has more than sufficient funds to have made the interest payment, it has not done so for the Energy Notes and for an earlier interest payment for the US$1.75bil fixed rate 5.75% notes due 2022 issued by 1MDB Energy (Langat) Ltd, due to the ongoing dispute between 1MDB and IPIC. All of 1MDB’s rights are reserved with respect to that dispute,” it said.
The ringgit rose against the US dollar to 4.0350 from 4.0468 while it strengthened against the pound sterling to 5.8185 from 5.8453 and advanced to 2.9456 against the Singapore dollar from 2.9594. Against the euro, it was at 4.5951 from 4.6113.
Reuters reported Hong Kong shares fell on Wednesday as investors waited for more clues on whether a recent pick-up in China's economy was just a seasonal blip or something more sustainable. The Hang Seng index fell 0.9%, to 20,055.29, while the China Enterprises Index lost 0.5% to 8,443.67.
At Bursa Malaysia, BAT was the top gainer, up RM1.18 to RM48.12, Carlsberg gained 28 sen to RM12.80 but Nestle fell 48 sen to RM75.52 and Henieken lost 16 sen to RM14.86, Ajinomoto lost 14 sen to RM11.80 and Dutch Lady
10 sen to RM54.
Among the banks and finance stocks, HLFG added 22 sen to RM14.94, RHB Cap 16 sen to RM6,AmBank 10 sen to RM4.53, Hong Leong Bank six sen to RM13.40, Maybank five sen to RM8.85 but Public Bank lost two sen to RM18.96.
Crude palm oil for third month delivery rose RM17 to RM2,678 per tonne. PPB Group rose 16 sen to RM15.58, KL Kepong 12 sen to RM23.08, Sime eight sen to RM7.62, IOI Corp one sen to RM4.19.
Axiata and Maxis pushed the KLCI up a total of 2.8 points. Axiata and Maxis added 10 sen each to RM5.46 and RM5.59 while Telekom gained two sen to RM6.60 and Digi was flat at RM4.38.
Oil prices rose on Wednesday as worries about supply disruptions resurfaced after Shell announced the closure of a key Nigerian pipeline, Reuters reported.
Petronas Gas was flat at RM21.30, Petronas Chemicals shed one sen to RM6.41 and Petronas Dagangan lost 16 sen to RM22.70.
Tenaga rose six sen to RM14, Genting Bhd 11 sen higher at RM8.46 but Genting Malaysia fell three sen to RM4.31. MISC gained three sen to RM7.63.
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