KUALA LUMPUR: Shares on Bursa Malaysia opened lower today, extending its string of consecutive losses, with no signs of a recovery on the FBM KLCI as yet.
The downside bias is likely to continue over the near term.
At 9.06am, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 2.21 points to 1,666.73 after losing 3.43 points to 1,668.94 at yesterday’s close.
It opened 1.44 points easier at 1,667.50 earlier today.
Market breadth was negative with 150 decliners trounced 79 winners, while 178 counters unchanged, 1,449 untraded and 21 others suspended.
Turnover stood at 326.56 million units worth RM94.63 million.
Malacca Securities Sdn Bhd said the key index is still consolidating after making strong gains over the May-June period that has pushed it into the overbought territory.
However, the research house said also, markets are also anticipating several new leads, both domestically and overseas, which would spur fresh buying but this could again leave the key index to drift lower.
“In addition, there are renewed concerns over the direction of global equities after they soared over 16 per cent year-to-date which have left valuations on the toppish side.”
With the consolidation likely to continue over the near term, the FBM KLCI’s supports are pegged at the 1,665 level, followed by the 1,660 level while the resistances are at 1,676 and 1,680 levels.
TNB topped losers in the heavyweights, shrinking 10 sen to RM13.68, IHH lost three sen to RM5.77, Press Metal reduced six sen to RM4.33 and Petronas Chemicals and Genting Malaysia were two sen easier at RM8.22 and RM3.37, respectively.
Of the losers, HSS Engineers and Hong Leong Financial were six sen easier at RM1.13 and RM18.62, respectively, Pos Malaysia slid five sen to RM1.76 while Teck Guan, Vitrox and MCE were all reduced four sen to RM1.09, RM6.85 and 65 sen, respectively.
The FBM Emas Index fell 15.48 points to 11,841.80 and the FBMT 100 Index down 15.23 points to 11,665.26.
The FBM Emas Shariah Index was 25.21 points easier at 12,233.48, the FBM 70 declined 18.52 points to 14,932.16 and the FBM Ace decreased 11.50 points to 4,689.23.
Sector-wise, the Financial Services Index perked 6.02 points to 16,621.24, the Plantation Index advanced 1.50 points to 6,887.15. but the Industrial Products & Services Index down 0.34 of-a-point to 159.87. – Bernama
KUALA LUMPUR, July 17 — Shares on Bursa Malaysia opened lower today, extending its string of consecutive losses, with no signs of a recovery on the FBM KLCI as yet. The downside bias is likely to continue over the near term. At 9.06am, the FTSE…
KUALA LUMPUR, July 16 — The benchmark index lost 0.31 per cent on subdued investors’ appetite as participants await developments on the US-China trade negotiations. At 12.30pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 5.17 points…
KUALA LUMPUR, July 15 — Shares on Bursa Malaysia extended Friday’s downbeat note this morning, as the market anticipated some bouts of bargain hunting activities over the near term, in tandem with Wall Street’s strong gains at the end of last…
PETALING JAYA: The ringgit hit a three-month high of 4.1145 against the US dollar today after US Federal Reserve chairman Jerome Powell supported market expectations of an interest rate cut later this month.
Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said Powell’s has been very cautious in his assessment of the state of the global economy, especially in the context of trade conflict, which is highly fluid.
“In that sense, the case for lowering interest rates is valid and the question now is by how much the Fed is willing to cut the federal funds rate this year. This will support the ringgit as foreign funds would flow into emerging markets in search for higher yielding assets. This could benefit the ringgit in the immediate term,” he told SunBiz.
Emerging Asian currencies strengthened against a weaker dollar yesterday and stocks rose amid the prospects of monetary policy support from the Fed.
FXTM market analyst Han Tan said should US monetary policy be eased by a wider-than-expected margin later this month, investors may question the strength of US economic growth momentum.
“Such concerns would encourage a softer dollar environment, presenting Asian assets with more potential upside, while safe havens such as gold and the Japanese yen could also advance further,” said Tan.
Still, potential gains in Asian assets remain capped by the lingering uncertainties surrounding US-China trade tensions. Risk appetite will likely be reined in, until both countries break the impasse and reach a deal that alleviates the global growth outlook.
Market sentiment surrounding the strength of the global economy could be further influenced by China’s economic data releases due over the coming days.
On Bursa Malaysia, the FBM KLCI edged up 0.29 point to close at 1,679.26 today. The market traded within a high of 1,681.78 and a low of 1,674.70 during the day.
Malacca Securities said with the Fed adopting a more dovish tone, there should be some near-term reprieve for Malaysian equities as it sees the positivity on Wall Street also permeating to the local stock market.
It said while the strongest hint of an interest rate cut is set to buoy near-term sentiments, it also underlines the increasing severity of the weakness in the US economy that could spread globally, given its position as the largest in the world.
“Although we think there could be some near-term positivity on Bursa Malaysia, we think that substantive upsides could still be elusive as valuations remain toppish. Hence, we see the 1,680-1,687 levels serving as the near-term resistances with the 1,700 resistance level becoming a significant hurdle. The supports, on the other hand, are at 1,670-1,672 levels, followed by the 1,660 level,” said Malacca Securities.
Schroder Investment Management (Singapore) Ltd chief economist & strategist Keith Wade expects a 25 basis point move at the next Fed meeting at the end of the month and. given its outlook for a sluggish economy, another move in September.
“Both are likely to be presented as ‘insurance’ against the downside risks facing the US economy. Our view is that more will eventually be needed given the headwinds facing the economy,” Wade said.
JAKARTA, July 11 — Indonesia plans to build a 7km bridge to connect two islands in the Malacca Strait, close to Singapore, as part of efforts to develop industry and tourism in the area, the government said today. The bridge connecting Batam and…
KUALA LUMPUR, July 5 ― Bursa Malaysia chalked up meagre gains but succumbed into the red thereafter this morning, as the key index remained in the overbought territory due to its recent uptrend. At 9.05am, the FTSE Bursa Malaysia KLCI (FBM KLCI)…
KUALA LUMPUR: Bursa Malaysia opened lower today, as investors begin to evaluate their position on the overbought key index and that of most global indices.
At 9.06am, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 2.38 points to 1,687.67 from Wednesday’s close of 1,690.05.
At the opening, the index went down 1.40 points to 1,688.65.
However, market breadth was positive with 145 gainers outpacing 74 losers, while 162 counters unchanged, 1,459 untraded and 21 others suspended.
Turnover stood at 153.37 million units worth RM36.64 million.
Malacca Securities Sdn Bhd in a research note believed the recent upsides on the FBM KLCI and that of most global indices were already overdone, particularly amid expectations of further loosening of monetary policies by some central banks to cushion the slowing economy, as well as the resumption of the US-China trade negotiations.
“Hence, we think that the way up will see increasing cautiousness and choppiness, as equities are already due for a pullback,“ it said, adding that on the upside, the FBM KLCI’s resistances are at 1,700 and 1,710, while the support levels are at 1,686 and 1,680 respectively.
Among heavyweights, Maybank shed two sen to RM8.95, Public Bank and Tenaga lost four sen each at RM22.96 and RM14.20, Petronas Chemicals eased three sen to RM8.57 and CIMB was one sen weaker at RM5.35.
Of the actives, Sumatec, KNM and Bumi Armada perked half-a-sen each at four sen, 30 sen and 22 sen respectively, Handal advanced three sen to 47 sen, while XOX was flat at five sen.
Hong Leong Bank topped the losers list, erasing 14 sen to RM18.96 and the top gainer is Heineken Malaysia, bagging 40 sen to RM23.32.
The FBM Emas Index slid 6.48 points to 11,928.59 and the FBMT 100 Index trimmed 9.06 points to 11,768.16.
The FBM Emas Shariah Index was 1.54 points firmer at 12,327.55, the FBM 70 improved 19.21 points to 14,886.73 and the FBM Ace increased 23.99 points to 4,607.63.
Sector-wise, the Financial Services Index contracted 25.19 points to 16,785.77 and the Industrial Products & Services Index slipped 0.16 of-a-point to 162.12.
But, the Plantation Index advanced 5.72 points to 6,958.25.
The physical price of gold as at 9.30am stood at RM182.40 per gramme, down 94 sen from RM183.34 at 5.00pm yesterday. — Bernama
KUALA LUMPUR, July 4 ― Bursa Malaysia opened lower today, as investors begin to evaluate their position on the overbought key index and that of most global indices. At 9.06am, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 2.38 points to…
KUALA LUMPUR: Bursa Malaysia managed to stay above the support level of 1,690 despite being weighed down by China’s disappointing services sector data, profit-taking activity as well as the overnight fall in crude oil prices.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) finished at its intra-day high of 1,690.05, although the key index was 0.95 of-a-point, or 0.06%, lower compared with Tuesday’s close of 1,691.0.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the mild downtrend on the local exchange was also in line with its regional peers’ performance, as investors turned jittery amid trade uncertainty.
China’s Caixin/Markit services purchasing managers’ index (PMI) fell from 52.7 in May to 52.0 in June, the weakest level in four months.
Transaction volume was higher at 3.01 billion units worth RM1.82 billion compared with 2.82 billion units worth RM2.56 billion on Tuesday.
Market breadth stayed negative with losers overtaking gainers by 456 to 395, while 420 counters were unchanged, 569 untraded and 19 others suspended.
The barometer index moved between 1,683.24 and 1,690.05 throughout the day.
Regionally, Singapore Straits Times Index trimmed 0.09% to 3,367.80, Japan’s Nikkei was 0.53% easier at 21,638.16 and Hong Kong’s Hang Seng Index weakened 0.07% to 28,855.14.
Meanwhile, commenting on the performance of banking blue chips which dominated the fall within the FBM KLCI’s 30 counters, Leong said it was merely a mild pull-back due to the recent gains seen in the sector.
“For instance, we have seen CIMB in the recovery mode since one or two weeks ago, so the decline seen today was normal; it was just a mild pull-back,“ he told Bernama when contacted.
At the closing bell, CIMB remained the top decliner among the finance-linked heavyweights, losing eight sen to RM5.36, followed by Maybank which fell one sen to RM8.97, Hong Leong Bank which erased four sen to RM19.10 and RHB Bank which shed two sen to RM5.77.
Meanwhile, on the outlook for the local stock market, Asia-Pacific senior vice president (investment) Datuk Dr Nazri Khan Adam Khan projected the FBM KLCI would trend higher on optimism over the US-China trade dispute, especially ahead of the US’ Independence Day holiday (July 4).
“On the domestic front, Malaysia’s digital economy continues attracting interest from international investors, which is in line with the initiative by the government to establish the country as the technology and digital hub in Asean,“ he said.
Of the actives, Sumatec added 2.5 sen to 3.5 sen while KNM shed half-a-sen to 29.5 sen and its warrant was flat at 13 sen.
Borneo Oil and Sapura Energy were unchanged at 4.5 sen and 30.5 sen, respectively.
Carlsberg topped the losers list, erasing 46 sen to RM25.50, while Chin Teck slumped 26 sen to RM6.54, BAT fell 14 sen to RM28.80, Time Dotcom was 13 sen weaker at RM8.97 and Guan Chong slipped 12 sen to RM3.45.
The FBM Emas Index slid 5.68 points to 11,935.07, the FBMT 100 Index gave up 6.85 points to 11,777.22 and the FBM 70 shrank 9.62 points to 14,867.52.
The FBM Emas Shariah Index was 7.25 points higher at 12,326.01 and the FBM Ace gained 60.75 points to 4,583.64.
Sector-wise, the Financial Services Index contracted 38.35 points to 16,810.96 and the Industrial Products & Services Index slipped 0.73 of-a-point to 162.28. However, the Plantation Index advanced 11.66 points to 6,952.53.
Main Market volume widened to 2.30 billion shares worth RM1.67 billion from 2.03 billion shares worth RM2.38 billion on Tuesday.
Warrants turnover, however, narrowed to 346.48 million valued at RM72.34 million from 423.88 million units valued at RM77.01 million.
Volume on the ACE Market improved to 361.58 million shares worth RM74.08 million versus 358.50 million shares worth RM103.32 million.
Consumer products and services accounted for 244.66 million shares traded on the Main Market, industrial products and services (230.85 million), construction (112.92 million), technology (137.25 million), SPAC (nil), financial services (37.80 million), property (95.99 million), plantation (9.03 million), REITs (17.22 million), closed/fund (19,000), energy (1.19 billion), healthcare (31.22 million), telecommunications and media (73.47 million), transportation and logistics (102.04 million) and utilities (14.13 million).
The physical price of gold as at 5pm stood at RM183.34 per gramme, up RM4.12 from RM179.22 at 5pm yesterday. — Bernama