KLCI, ringgit rally as Fed predicts zero hikes this year

KUALA LUMPUR: The local market rallied on Thursday while the ringgit strengthened against the US dollar as the US Federal Reserve said it did not expect any rate hikes this year.

At 9.05am, the FBM KLCI was up 5.15 points to 1,689.36. Trading volume was 156.17 million shares valued at RM43.11mil. There were 146 advancers versus 51 decliners and 167 counters unchanged.

Early opening Asian markets were also on the rise with Japan’s Nikkei gaining 0.2% and South Korea’s Kospi jumping 1%.

However, despite the US central bank’s more shift to a more accomodative stance, gains were capped by a warning from US President Donald Trump that he might leave tariffs on Chinese imports for a “substantial period” in the event of a trade deal, to ensure China complied to the agreement.

Most actively traded stocks on Bursa Malaysia were Dynacia trading unchanged at 9.5 sen, Perdana Petroleum rising one sen to 44 sen and Hibiscus Petroleum gaining three sen to RM1.06.

Some KLCI-linked stocks on the rise were Hong Leong Bank, adding 14 sen to RM20.94, Petronas Gas climbing 14 sen to RM17.84 and Petronas Chemicals lifting 10 sen to RM9.24.

Counters on the backfoot included Maxis shedding eight sen to RM5.31, Petronas Dagangan falling six sen to RM24.92 and Public Bank sliding six sen to RM24.40.

The ringgit strengthened against a falling greenback following the Fed announcement. It gained 0.45% in Thursday trade to 4.0588.

Meanwhile, oil prices retreated as the Fed’s concerns over a slowing economy weighed on the demand outlook for the commodity.

US crude slipped 12 cents to US$60.11 a barrel and Brent crude dropped eight cents to US$68.42 a barrel.

Source: TheStar