BANGKOK, Dec 4 — Malaysian shares hit a 15-month low today as the ringgit extended losses amid concerns over the impact of declining oil prices.
Most other Southeast Asian indices edged higher in line with Asian stocks amid optimism about the US economy.
The Kuala Lumpur composite index was down 0.3 per cent at 1,752.86, having earlier hit 1,743.62, its lowest since September 2013. The fall sent the index into oversold territory, with its 14-day Relative Strength Index (RSI) slipping to 29.78. A level of 30 or lower indicates an oversold market.
Technical indicators pointed to a rebound in the near term but any strong gain would be capped by the weakness in the ringgit, broker Affin Hwang Capital said in a report.
The ringgit lost 0.2 per cent to 3.4470 per US dollar.
Shares of Tenaga Nasional and Kuala Lumpur Kepong were among the underperformers while shares of Petronas Chemicals Group jumped 3.6 per cent to RM5.49 after a 6 per cent drop in the preceding three days.
Broker Maybank IB Research upgraded Petronas Chemicals Group to “buy” from “hold”, citing the stock’s low valuations.
“We think the current level is a good buying opportunity, as the blanket de-rating of the oil and gas sector overshadows many of PCHEM’s attributes,” it said in a report.
Singapore’s Straits Times Index was up 0.3 per cent after a 0.6 per cent loss yesterday. Shares of CapitaLand rose 0.3 per cent after its unit acquired property in Jakarta, while weak sentiment on oil and gas-related stocks continued to hit shares such as Keppel Corporation.
Jakarta edged up 0.2 per cent, with lower oil prices helping ease concerns over the country’s fiscal and trade deficit.
A central bank official said Indonesia’s current account deficit is expected to fall below 3 per cent of gross domestic product this year owing to a sharp drop in global oil markets and last month’s hike in domestic subsidised fuel prices. — Reuters
