Banks, telcos send KLCI to January 2017 low


: Banks and telcos dragged the FBM KLCI deeper into the red at the close on Monday, as foreign selling on Bursa stretched into the 34th day while most key Asian markets lost ground over the rising US- trade war tensions.

At 5pm, the KLCI was down 16.05 points or 0.95% to 1,678.10 – the lowest since 2017. Turnover declined to 2.04 billion shares valued at RM1.97bil. There were 298 gainers, 520 losers and 406 counters unchanged.

The ringgit weakened against the by 0.38% to 4.0175, pound sterling rose 0.03% to 5.3194 and declined 0.37% to 4.6834. It rose 0.02% to the dollar to 2.9484.

On the external front, world shares fell, dented by worries over a worsening trade dispute between the United States and other major , while oil prices gave up some of the gains made after major exporters agreed a modest production increase, Reuters reported .

Hong Kong stocks fell to a six-month low, dragged by tech shares as the US plans limits on investment in US technology firms,. The Hang Seng index fell 1.3%, to 28,961.39, while the China Enterprises Index lost 1.2%, to 11,208.90.

Bursa Malaysia has come under heavy selling pressure. MIDF Research said the net amount offloaded by foreign investors last week stood above the RM1bil level for the fifth time this year at RM1.89bil net.

CIMB fell 41 sen to RM5.40 and erased 6.83 points from the KLCI. This was the lowest since April 2017. Maybank fell 11 sen to RM9.08 and wiped out 2.14 points, Public Banl lost 20 sen to RM22.72 and RHB Bank 12 sen lower at RM5.53.

As for telcos, Axiata lost 20 sen to RM4.06 and erased 3.22 points, Digi lost 10 sen to RM4.27, Telekom eight sen to RM3.13 but Maxis gained six se to RM5.56.

Earlier, Fitch Ratings revised Telekom’s outlook to negative from stable due to its weakening credit profile, driven by pressure on earnings before interest, tax, depreciation and amortisation.

Source: The Star

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