KUALA LUMPUR – Bursa Malaysia opened mixed today amidst weak sentiments in the broader market.
At 9.20am, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 2.51 points to 1,448.60 from 1,446.09 at Friday’s close.
The key index opened 0.6 of-a-point better at 1,446.69.
However, on the broader market, losers edged past gainers 251 to 235, while 280 counters were unchanged, 1,590 untraded and 26 others suspended.
Turnover stood at 474.57 million units worth RM180.15 million.
In a note today, Malacca Securities said weak external demand (slowing exports) may continue to weigh on growth.
“Meanwhile, the lower liners may undergo a consolidation spell with the key focus shifting towards corporate earnings releases. Still, any further pullback may also attract quick bargain hunting, in our view,” it added.
Among the heavyweights, CIMB rose five sen to RM5.55, TNB added two sen to RM9.95, Maybank and Public Bank were flat at RM9 and RM4.13, respectively, while Petronas Chemicals declined two sen to RM6.80 and IHH Healthcare eased five sen to RM6.
Of the actives, Parkson advanced 2.5 sen to 29.5 sen and SWS Capital improved 1.5 sen to 34.5 sen, while Tanco was flat at 56 sen and KNM shed one sen to 9.5 sen.
On the index board, the FBM Emas Index expanded by 17.14 points to 10,678.70, the FBMT 100 Index went up 16.83 points to 10,364.36, the FBM Emas Shariah Index rose 9.07 points to 10,882.58 and the FBM 70 Index increased 18.25 points to 14,117.77, while the FBM ACE Index slid 1.34 points to 5,262.80.
Sector-wise, the Financial Services Index advanced 25.94 points to 16,288.04 and the Industrial Products and Services Index edged up 0.38 of-a-point to 167.65, while the Energy Index went down 1.04 points to 814.22, and the Plantation Index slid 6.62 points to 9,989.18.
Meanwhile, the ringgit opened little changed against the US dollar this morning as sentiments were mixed in light of the United States’ thriving economy and China’s wobbling economy, said an analyst.
At 9am, the local note slightly rose to 4.6460/6500 against the greenback from 4.6465/6510 at last Friday’s close.
SPI Asset Management managing director Stephen Innes said although these factors could have varying effects on other assets, they usually help strengthen the US dollar in the foreign exchange (forex) market.
“I anticipate that these themes will continue to remain dominant. However, as the US Federal Reserve (Fed) chair Jerome Powell is set to deliver a speech at Jackson Hole on Friday, I believe the market may experience range-bound trading," he told Bernama.
Additionally, he said there is a possibility of a slight increase in the ringgit due to the ongoing discussions of stimulus in China and consistent intervention in the Chinese yuan, which should keep Asia forex stable this week.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist and social finance head Mohd Afzanizam Abdul Rashid said the ringgit is likely to remain weak against the US dollar as the Fed is likely to keep its hawkish stance on interest rates.
“The divergence in monetary policy might boost the US dollar in the near term, although the Federal Open Market Committee members are expected to shift their direction at some point in the future," he said.
Afzanizam also believes that Malaysia’s second quarter of 2023 gross domestic product print which came in at 2.9% suggests that the Bank Negara Malaysia is likely to maintain their accommodative monetary.
In the meantime, the ringgit was traded lower against a basket of major currencies.
It had weakened versus the Japanese yen to 3.1997/2027 from 3.1926/1959 last Friday, depreciated against the euro to 5.0530/0573 from 5.0503/0552 and inched down vis-a-vis the British pound to 5.9204/9255 from 5.9131/9189 previously.
At the same time, the local note traded mixed against other Asean currencies.
The ringgit ticked up vis-a-vis the Thai baht to 13.1299/1460 from 13.1331/1510 but declined against the Singapore dollar to 3.4232/4267 from 3.4228/4264 last Friday.
Meanwhile, the local note remained flat against the Philippines’ peso at 8.27/8.28 as well as the Indonesian rupiah at 303.9/304.1. – Bernama, August 21, 2023
