Bursa expected to remain under pressure amid NDF crackdown

KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) closed yesterday at 1,626.8 points, down 0.1 per cent, or 0.86 point, on market uncertainty due to Bank Negara Malaysia’s crackdown on trading of the ringgit in non-deliverable forward (NDF) markets.

There were 332 gainers and 397 losers, while 371 counters were unchanged.

Among the major movers were Malayan Banking Bhd, which jumped 1.2 per cent to RM7.75, Petronas Chemicals Group Bhd, which gained 1.5 per cent to RM6.93, and AMMB Holdings Bhd, which rose 2.5 per cent to RM4.06.

The laggards were CIMB Bank Bhd, which was down 1.9 per cent to RM4.70, and Axiata Group Bhd, which lost 1.9 per cent to RM4.56.

The ringgit lost one per cent to RM4.3945 against the US dollar yesterday after Bank Negara warned Malaysia-registered banks not to facilitate trade in ringgit NDF.

VCB Capital chief executive Mohamad Amir said the FBM KLCI was expected to be lacklustre and remain under pressure, in line with the weaker global index.

The US dollar index touched a near 14-year high on Wednesday, while oil prices fell to US$47.37 (RM208) per barrel amid a volatile session as traders were caught between a build-up in United States stockpiles and the chance of Organisation of the Petroleum Exporting Countries cutting crude output, according to Reuters.

Among the stocks to look out for is Boustead Plantations, which recorded a 58.1 per cent increase in net profit for its third quarter ended September to RM37.36 million.

Others are Hua Yang, which plans to launch RM874 million of properties in Seberang Prai and Hap Seng Plantations, which is riding on high spot prices of crude palm oil of around RM2,800 per tonne.