Monday 02 Oct 2023
By /
main news image

KUALA LUMPUR (Sept 27): The FBM KLCI fell 0.08 point to settle at 1,798.64 points with Asian shares after the US Federal Reserve (Fed) raised interest rates.

At 5pm, the KLCI cut losses after falling to its intraday low at 1,793.83 points. Malacca Securities Sdn Bhd senior analyst Kenneth Leong told the KLCI was, however, supported by rising crude oil prices at above US$80 a barrel.

“(At Bursa Malaysia) the sentiment was quite negative today. Both FBM Small Cap and ACE (indices) were in the red most of the day, mainly affected by the Fed’s move to raise interest rates.

"It was not just us, most emerging markets were declining today. This trend is likely to persist in the near term,” Leong said.

Across Asian stock markets, Japan’s Nikkei 225 fell 0.99% while Hong Kong's Hang Seng declined 0.36%. Bloomberg reported that stocks in Europe and Asia fell Thursday as investors digested the likelihood of more Federal Reserve interest-rate increases stretching into next year.

Earlier today, Reuters reported that the Federal Reserve raised interest rates on Wednesday and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least three more years of growth.

It was reported that in a statement that marked the end of the era of "accommodative" monetary policy, Fed policymakers lifted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2.00 percent to 2.25 percent. It was reported that the US central bank still foresees another rate hike in December, three more next year, and one increase in 2020.

      Text Size