Sharply lower on foreign fund selling

BURSA Malaysia extended losses to close sharply lower yesterday on net selling by most foreign funds due to bearish external factors, dealers said.

The FBM KLCI fell 19.53 points to close at the day’s low of 1,686.51, after hitting a day high of 1,691.28.

Market breadth was negative as losers led gainers 511 to 393, while 291 counters were unchanged, 606 untraded and 38 suspended.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said there was some net selling by selected foreign funds after the US Federal Reserve kept interest rates intact.

He, however, opined that the move made by the Fed was only for “public relations” purposes, to make investors see that the US economy remained stable.

He expects the Fed to adjust interest rates at its next meeting scheduled towards the year-end.

Pong said the Norwegian Sovereign Wealth, which has been the most aggressive foreign fund on the local bourse, may lose interest in it after announcing its biggest loss quarterly loss in four years.

He said the market was also affected by the net selling of local funds due to post-budget profit-taking.

British American Tobacco and Dutch Lady ended among the top losers, down 46 sen and 36 sen to RM62.24 and RM47.24 respectively. Petronas Dagangan lost 26 sen to RM22.50. – Bernama