Free fall at Bursa as Britain votes to leave EU
KUALA LUMPUR (June 24): The FBM KLCI tumbled 1.4% at the midday break today in line with the bloodbath at most global markets on intense reports that Britons had voted in a national referendum to part ways with the European Union (EU).
At 12.30pm, the FBM KLCI lost 22.66 points to 1,617.32.
Market breadth turned negative with losers hammering gainers by 801 to 95, while 193 counters traded unchanged. Volume was 1.19 billion shares valued at RM1 billion.
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The top losers included Tenaga Nasional Bhd, Carlsberg Brewery Malaysia Bhd, Panasonic Manufacturing Malaysia Bhd, SCGM Bhd, United Plantations Bhd, Fraser & Neave Holdings Bhd, Genting Bhd, PPB Group Bhd and SAM Engineering & Equipment (M) Bhd.
The actives included Vivocom International Holdings Bhd, AirAsia Bhd, Karambunai Corp Bhd, Bumi Armada Bhd, KNM Group Bhd and AirAsia X Bhd.
The gainers included British American Tobacco (M) Bhd, Nestle (M) Bhd, Versatile Creative Bhd and Aturmaju Resources Bhd.
Carnage came to world markets on Friday as major television networks said Britain had voted to leave the EU, sending sterling on a record plunge and pummelling share markets around the globe, according to Reuters.
Such a body blow to global confidence could well prevent the Federal Reserve from raising interest rates as planned this year, and might even provoke a new round of emergency policy easing from the major central banks, it said.
Kenanga IB Research said the FBM KLCI was mostly in the red during yesterday's session as investors were mostly kept at bay prior to the key Brexit referendum that took place last night, as it closes just 2.29 points or 0.14% higher at 1,639.98.
It said market breadth was also lacklustre with 406 decliners outmuscling 305 advancers.
The research house said that on the chart, the benchmark index traded sideways on lower trading volume on the back of flattish momentum indicators, as depicted by the monotonous MACD histogram and Stochastic.
"While the global markets had rallied overnight after majority polls are flagging UK to remain in the EU, the British pound had tumbled against the greenback during today's opening bell after Newcastle-Upon-Tyne and Sunderland had shown immense support to leave the EU.
"With the Brexit vote still very much uncertain at this point as it could go either way, we view that the FBM KLCI is to trade tepidly within 1,620–1,650 today," it said.
Source: TheEdgeMarkets
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