KUALA LUMPUR: The continuous sell-off in heavyweights due to weak external developments has pulled Bursa Malaysia to close the day lower in tandem with its regional peers.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 8.95 points to finish at 1,592.19 from 1,601.15 at the close yesterday.
The barometer index, which opened 0.22 of-a-point better at 1,601.36?, mostly moved in negative territory between 1,587.07 and 1,601.36 throughout the day.
FBM KLCI was mainly dragged down by losses in Petronas-related stocks with a combined 4.965 points.
Petronas Chemicals fell 20 sen to RM7.01, Petronas Gas lost 32 sen to RM16.14 and Petronas Dagangan erased 58 sen to RM23.58.
The overall market breadth was sour with losers overwhelming gainers 552 to 320, while 381 counters were unchanged, 765 untraded and 15 others suspended.
Volume increased slightly to 2.93 billion shares worth RM2.15 billion from 2.90 billion shares worth RM1.98 billion on Wednesday.
Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the equity markets had become increasingly anxious about the potential outcome of the US-China “phase one” deal talks.
“Whether it’s going to happen or not, the situation is pretty much fluid and unpredictable,” he said.
He also said the recent development with the US Senate passing the Hong Kong human rights bill seemed to suggest that the prospect of reaching an amicable solution under the ongoing trade negotiations is highly uncertain.
“As such, concerns over the impact from the trade war on the global economy has resurfaced again.
“That has led markets to be more risk-averse towards risky assets such as equities,” he told Bernama.
In a nutshell, Dr Mohd Afzanizam said, the sentiment was very much externally driven and revolved mostly around the trade war.
“Typically, safe-haven assets such as government bonds would prevail. Therefore, there will be a switch from equities to bonds in times of heightened uncertainties,” he explained.
Among the heavyweights, Maybank eased three sen to RM8.64, Tenaga lost 18 sen to RM13.48, and Public Bank trimmed 10 sen to RM19.82.
IHH added one sen to RM5.45 while CIMB was flat at RM5.38.
Of the actives, Alam Maritim remained the most actively traded stock for the second consecutive day after rising 1.5 sen to 14.5 sen with 165.72 million shares changing hands.
Bumi Armada shed three sen to 51.5 sen, Netx was flat at two sen and Ekovest gained four sen to 85.5 sen. Fintec and KNM slipped one sen each to seven sen and 40 sen, respectively.
The FBM Emas Index was 57.68 points lower at 11,308.78, the FBMT 100 Index fell 58.63 points to 11,116.88, the FBM Ace erased 60.67 points to 4,882.78, the FBM Emas Shariah Index contracted 61.52 points to 11,836.39 and the FBM 70 decreased 58.72 points to 14,120.82.
Sector-wise, the Financial Services Index retreated 76.02 points to 15,566.04 and the Industrial Products & Services Index slipped 1.31 points to 150.89, but the Plantation Index rose 58.06 points to 7,141.15.
Rakuten Trade Sdn Bhd head of research, Kenny Yee, said the local corporate earnings results that averaged better than expected, coupled with buying in the small-capitalisation stocks, helped cushion the downtrend on Bursa today.
Main Market volume stood at 1.94 billion shares worth RM1.98 billion compared with 1.94 billion shares valued at RM1.77 billion transacted on Wednesday.
Warrants turnover increased to 394.17 million units worth RM74.0 million versus yesterday’s 314.27 million units valued at RM67.36 million.
Volume on the ACE Market decreased to 593.65 million units worth RM101.9 million compared with 648.42 million units valued at RM135.86 million previously.
Consumer products and services accounted for 161.64 million shares traded on the Main Market, industrial products and services (286.9 million), construction (199.17 million), technology (154.31 million), SPAC (nil), financial services (49.24 million), property (179.62 million), plantations (76.29 million), REITs (10.2 million), closed/fund (15,000), energy (730.16 million), healthcare (13.82 million), telecommunications and media (25.46 million), transportation and logistics (19.53 million), and utilities (30.63 million). - Bernama
