KLCI slumps to 16 month low on selling of Telekom, Tenaga

  • Markets Premium
  • Thursday, 21 Jun 2018

KUALA LUMPUR: Key Asian markets ended in the red on Thursday on gnawing worries about the US-China trade conflict while at Bursa Malaysia, the key FBM KLCI index fell to the lowest since February 2017 on selling of Telekom Malaysia and Tenaga Nasional.

At 5pm, the KLCI was down 17.43 points or 1.02% to 1,692.32 as it entered a correction phase. It is down 5.82% year-to-date. This was was a contrast from the April 19 record high of 1,895.

Turnover was 2.12 billion shares valued at RTM2.67bil. Decliners beat advancers more than three to one or 748 gainers, 199 losers and 357 counters unchanged.

On the external front, Hong Kong stocks ended at a six-month low on Thursday. Down 1.35% while China's Shenzen Composite was the worst performer, down 2.13%. 

China finished over 1% lower again , while MSCI's broadest index of Asia-Pacific shares outside Japan ended down 0.6%  having been as much as 0.5% higher at one point, Reuters reported. 

The dollar powered to an 11-month high in the currency market, maintaining pressure on inflation and on countries and firms that have gorged themselves on dollar-denominated debt in recent years.

The ringgit weakened against the US dollar to 4.0157, down 0.26% and this was the lowest since July 2016.  However, it gained strength against the pound sterling, up 0.12% to 5.2635, edged up 0.07% to the euro to 4.6249 and climbed 0.13% against the Singapore unit to 2.9446.

Telekom fell 49 sen to RM3.14 and wiped out 3.28 points from the KLCI as investors were rattled by the government's move to reduce broadband prices by 25% by year-end.

Digi lost eight sen to RM5.35, Axiata four sen to RM5.83 and Maxis unchanged at RM5.57.

Crude palm oil (CPO) for third month delivery continue to lose ground, falling RM13 to RM2,249 per tonne, the lowest since July 2016.

However, PPB Group rose 28 sen to RM19.52, KL Kepong up 24 sen to RM23.78 and IOI Corp four sen higher at RM4.61.

Sime Plantation fell 10 sen to RM5.35, Sime Darby lost four sen to RM2.43 and Sime Property six sen lower to RM1.17.

Oil prices fell on Thursday as crude exporters in OPEC appeared to be nearing a deal to increase production. US light crude oil fell US$1.06 to US$64.65 and Brent was down US$1.29 to US$73.45. 

Petronas Dagangan tumbled 74 sen to RM24.12 and erased 1.31 points, Petronas Gas gained two sen to RM17.24 and Petronas Chemical one sen higher at RM8.40.

Power giant Tenaga fell 32 sen to RM13.94 and erased 3.23 points, MISC was down 10 sen to RM6, Genting Malaysia and Genting two sen lower at RM4.93 and RM8.57.

Among the banks Hong Leong Bank fell 56 sen to RM17.90 and wiped out 2.16 points, Public Bank lost 16 sen to RM22.62, Maybank was seven sen lower at RM9.17, CIMB and RHB Bank shed four sen each to RM5.83 and RM5.48.


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