KLCI, key Asian markets close lower on US rate hike fears

KUALA LUMPUR: Bursa Malaysia and key Asian markets ended Friday in the red on growing worries that the US Federal Reserve would raise interest rates in December.

Bursa Malaysia opened in the red and stayed that way throughout the day.

At 5pm, the FBM KLCI was down 13.33 points or 0.77% to 1,708.09. Turnover was 1.65 billion shares valued at RM1.80bil. There were 244 gainers, 567 lsoers and 339 counters unchanged.

Reuters reported European shares dipped at the open on Friday, joining a global market retreat that spread from Wall Street to Asian markets after the Federal Reserve noted a dip in U.S. business investment and suggested a rate hike was on track for December.

Hong Kong's Hang Seng Index closed down 2.4%, the Hang Seng China Enterprises index fell 2.5%. For the week, the Hang Seng fell 3.3%.

At Bursa, international energy shipping and maritime conglomerate MISC fell 52 sen to RM6.45 and wiped pout 4.15 points from the KLCI. Moody's Investors Service has affirmed the Baa2 issuer rating of MISC with a stable rating outlook.

IHH Health lost 14 sen to RM4.85 and erased 2.06 points, Genting Malaysia fell two sen to RM3.58 but Genting Bhd edged up two sen to RM6.78. Sime Darby lost five sen to RM2.45, MAHB 11 sen lower at RM8.03.but Tenaga added six sen to RM15.

CIMB fell 12 sen to RM5.57. Maybank three sen to RM9.29, Hong Leong Bank four sen to RM20.62, RHB Bank shed one sen to RM5.26 and Pubic Bank flat at RM24.70.

Maxis lost six sen to RM5.45, Digi lost five sen to RM4.45, Axiata four sen to RM3.58 and Telekom one sen to RM2.36.

Sime Plantations rose five sen to RM5.26, IOI Corp lost three sen to RM4.56,  KL Kepong two sen to RM24.88 and PPB Group gave up 30 sen to RM16.98.

Oil prices fell to multi-month lows on Friday as global supply increased and investors worried about the impact on fuel demand from of lower economic growth and trade disputes.

Benchmark Brent crude oil fell to its lowest since early April, down more than 18% since reaching four-year highs at the beginning of October. 

Brent was 15 cents a barrel lower at US$70.50 by 0925 GMT, down more than 3% for the week and more than 14% this quarter.

US light crude oil was 25 cents lower at US$60.42, down 4.3% this week and off more than 20% since early October, putting it officially in bear-market territory.

As for oil and gas stocks. Petronas Dagangan tumbled RM1 to RM27 and Petronas Chemical 11 sen to RM9.59 but Petronas Gas gained six sen to RM18.76. Dialog fell six sen to RM3.34.

Corporate News , Markets