Tuesday 03 Oct 2023
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KUALA LUMPUR (Sept 28): The FBM KLCI dropped 6.18 points or 0.4% mainly on late selling of index-constituent Genting Bhd shares. Malaysian equities have seen foreign selling on US interest rate hike and tax cut cues.

At 5pm, the KLCI ended at 1,758.06 points while Genting shares fell three sen to RM9.48. In currency markets, the ringgit weakened to 4.2310 versus the US dollar at 5:22pm.

“It (Malaysian shares) was down since last week on foreign selling factor. Investors’ sentiment will definitely get affected from this.

"At the moment, the US dollar is strengthening against the ringgit,"
Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com.

Reuters reported that the dollar and US bond yields rose on Thursday after President Donald Trump proposed the biggest US tax overhaul in three decades and as strong US economic data supported the case for a Federal Reserve rate hike later this year.

Trump offered to lower corporate income tax rates, cut taxes for small businesses and reduce the top income tax rate for individuals. The dollar's strength pressured many emerging market currencies and bonds, helping drag down MSCI's broadest index of Asia-Pacific shares outside Japan 0.4 percent to one-month lows. South Korean 10-year yields hit a 2-year high.

Across Bursa Malaysia, there were 473 decliners versus 316 advancers. A total of 2.31 billion shares worth RM2.19 billion were traded.

Tiger Synergy Bhd was the most active stock with some 139 million shares transacted. Tiger Synergy shares closed unchanged at six sen.

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