Bursa Malaysia falls for 10th straight session

03 Feb 2020 / 18:04 H.

KUALA LUMPUR: Bursa Malaysia closed lower for the 10th straight session today, dragged down by all index except for the FBMPalmOil index, despite bids by China’s central bank to steady its domestic markets, said an analyst.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 0.59 per cent or 9.11 points to 1,521.95 from last Friday’s close of 1,531.06.

After opening 8.92 points easier at 1,522.14, the benchmark index moved between 1,517.61 and 1,528.06 throughout the day.

On the broader market, losers thumped gainers 738 to 281, with 327 counters unchanged, 614 untraded and 21 others suspended.

Turnover increased to 3.97 billion shares valued at RM2.85 billion from 3.78 billion shares worth RM3.29 billion on Friday.

Analysts said China’s move was not enough to boost economic activity in the wake of the 2019 novel coronavirus outbreak.

“In the context of Asia, however, the big question is in the currency market and possible outflows, as well as an economic reality check.

“With China’s industrial complex on lockdown for another week, it is hard to view these events through anything other than a negative economic lens,” said AxiCorp chief market strategist Stephen Innes.

He said the adverse knock-on effects would move beyond China’s border and would probably cascade globally.

It was reported that the People’s Bank of China (PBoC) said that it was lowering the seven-day reverse repo rate to 2.40% from 2.50%, and cutting the 14-day tenor to 2.55% from 2.65% previously.

The cut came as Chinese financial markets reopened after an extended Lunar New Year holiday when the death toll from the coronavirus outbreak and number of infections climbed sharply.

On Monday, the PBoC also pumped in 1.2 trillion yuan (US$174 billion) worth of liquidity into the financial markets via reverse repo operations.

On the local front, Malacca Securities Sdn Bhd said the lower liners and broader market shares were not spared from the selldown as the weakness persisted.

“With the market sentiment remain largely dour, we reckon that further pullback is expected on the lower liners before we head to the earnings season towards the final weeks,” it said in a research note.

Among the heavyweights, Hap Seng fell 23 sen to RM9.50, Axiata dropped 10 sen to RM4.20, Sime Darby shed five sen to RM2.13, Hartalega eased 12 sen to RM5.80, and Malaysia Airports declined 11 sen to RM6.63.

Of the actives, Bumi Armada recovered 3.5 sen to 39 sen, while Sapura Energy and Vivocom were flat at 24.5 sen and two sen, respectively.

As for the top losers, Nestle dipped RM1.10 to RM143.20, Dutch Lady lost 98 sen to RM40.20 and KESM contracted 87 sen to RM9.25.

On the index board, the FBM Emas Index decreased 81.60 points to 10,808.52, the FBM Emas Shariah Index fell 89.85 points to 11,462.85 and the FBMT 100 Index erased 79.49 points to 10,624.10.

The FBM 70 was 166.19 points weaker at 13,485.31 and the FBM Ace lost 43.86 points to 5,333.36.

Sector-wise, the Industrial Products and Services Index inched down 1.07 points to 142.24, the Financial Services Index down 124.77 points to 14,657.48, and the Plantation Index fell 66.80 points to 7,076.82.

Main Market volume rose to 2.72 billion shares valued at RM2.57 billion from 2.59 billion shares worth RM2.98 billion on Friday.

Warrants turnover decreased to 479.95 million units worth RM80.37 million from 547.33 million units valued at RM105.07 million previously.

Volume on the ACE Market expanded to 779.84 million shares valued at RM198.80 million from 644.87 million shares worth RM196.75 million on Friday.

Consumer products and services accounted for 496.27 million shares traded on the Main Market, industrial products and services (356.97 million), construction (167.25 million), technology (246.13 million), SPAC (nil), financial services (50.57 million), property (244.38 million), plantations (84.16 million), REITs (12.52 million), closed/fund (2,000), energy (846.54 million), healthcare (80.93 million), telecommunications and media (29.63 million), transportation and logistics (72.17 million), and utilities (35.08 million). - Bernama

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