KLCI, ringgit fall on fears of exclusion of the global bond index – Business News



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KUALA LUMPUR (Reuters) – The FBM KLCI fell sharply on Wednesday on fears that the Malaysian bonds would be withdrawn from the FTSE World Government Bond Index.

The FTSE Russell put local government bonds on the watch list for six months after a review, raising concerns that an exclusion could lead to a downgrade.

The ringgit saw the selling pressure of the news, losing 0.5% against the US dollar in the previous session. At noon on Wednesday, the currency fell 0.3% against the dollar at 4.1435.

It also fell 0.1% against the pound sterling at 5.4116 and 0.35% against the Singapore dollar at 3.0602.

At 12:30, the FLC KLCI fell 12.68 points to 1,616.78. Trading volume was 1.82 billion shares, worth RM845.79 thousand. The decliners surpassed the advanced 636 to 135 and the 302 markers remained unchanged.

Twenty-two accountants linked to the KLCI slipped into the red in the morning session, led by shares of banks and telecoms companies.

Maybank lost 15 sen to RM9.06 while Public Bank fell 12 sen to RM22.48, CIMB fell 3 sen to RM5.02 and Hong Leong Bank fell 12 sen to RM19.96.

Among the telecommunications companies, Maxis fell nine sen to RM5.47 and Axiata fell seven sen to RM4.11.

The major shares traded on Bursa Malaysia included Sapura Energy sliding a sen to 32 sen, changing Daya unchanged in one sen and Bio Osma losing 0.5 sen to seven sen.

Elsewhere in the region, markets were mostly smaller, despite better-than-expected first-quarter GDP growth of 6.4%.

The Shanghai Composite Index remained virtually stable while the CSI300 index lost 0.3% and Hong Kong's Hang Seng fell 0.2%

Japan's Nikkei index rose 0.3 percent, while South Korea's Kospi index was flat.

Meanwhile, oil prices continue to rise, as Chinese refineries showed strong demand, while the US offer fell unexpectedly.

US crude rose 40 cents to $ 64.45 a barrel, while Brent crude rose 24 cents to $ 71.96 a barrel.

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