Bursa remains negative as investors brace for looming Fed hike

Bursa remains negative as investors brace for looming Fed hike

KUALA LUMPUR: The FBM KLCI remained in the red at midday as investors brace for the conclusion of the US Federal Open Market Committee meeting where it is expected to announe another large interest rate hike.

At 12.30pm, the key index was down 5.98 points to 1,455.12. The overall market was negative with 497 decliners compared with 219 gainers.

Trading volume was 1.29 billion shares valued at RM694.02mil.

The performance of the domestic market was in line with that of regional markets as the US central bank’s increase in the borrowing cost is expected to put further pressure on the global economy.

Japan’s Nikkei fell 1.25% to 27,343, South Korea’s Kospi dropped 1% to 2,345 and China’s composite index slid 0.6% to 3,105.

Hong Kong’s Hang Seng shed 1.5% to 18,496 and Australia’s ASX200 was down 1.5% to 6,704.

On the Malaysian bourse, commodities-related counters were among the biggest losers including Press Metal dropped 18 sen to RM4.24, PETRONAS Gas fell 10 sen to RM16.60 and PETRONAS Chemicals lost 10 sen to RM8.60.

Sime Darby Plantation fell 10 sen to RM4.34, IOI dropped five sen to RM3.88 and Axiata dropped five sen to RM2.76.

Meanwhile, glove maker Top Glove continued its fall as analysts gave downbeat assessments of its prospects following a loss-making final quarter.

The stock fell 5.5 sen to 65.5 sen on the back of 143.59 million shares exchanging hands, the most active in morning trade.