KUALA LUMPUR – Bursa Malaysia opened higher but had retreated within minutes, tracking the weaker Wall Street performance as market sentiments remained very much tuned to the ongoing war in Ukraine.
At 9.05am, the benchmark FTSE Bursa Malaysia KLCI fell 0.14 of-a-point to 1,583.08 from 1,583.22 at yesterday’s close.
The barometer index opened 1.95 points higher at 1,585.17.
On the broader market, losers led gainers 156 to 110, while 233 counters were unchanged, 1,777 untraded and 73 others suspended.
Total turnover stood at 127.64 million worth RM52.42 million.
Rakuten Trade Sdn Bhd vice-president of Equity Research, Thong Pak Leng said market sentiments remained cautious from the lack of buying catalysts, despite the persistent net inflow from foreign funds which topped RM6.3 billion in the year-to-date.
“As such, we reckon the index would possibly trend within the 1,580-1,590 range today amid the continuous accumulation by foreign funds,” he said.
Meanwhile, oil benchmark Brent crude jumped to US$113 (RM474.8) per barrel as the European Union could be facing a shortage of energy supplies soon.
Back home, Bursa heavyweights Maybank rose 2 sen to RM8.90, Petronas Chemicals added 1 sen to RM9.57 and Public Bank was flat at RM4.65, while CIMB lost 3 sen to RM5.30 and IHH Healthcare dropped 4 sen to RM6.12.
Of the actives, Sapura Energy and Mieco were flat at 4 sen and 62.5 sen, respectively, while Capital A, Yong Tai and TWL gained 0.5 sen each to 75.5 sen, 11.5 sen and 7 sen, respectively.
On the index board, FBM 70 increased 6.17 points to 13,745.10 and FBMT 100 Index rose 0.45 of-a-point to 11,022.95, while FBM Emas Index inched down 1.0 point to 11,336.40, FBM Emas Shariah Index reduced 5.15 points to 11,894.13, and FBM ACE fell 7.25 points to 5,594.22.
Sector-wise, the Industrial Products and Services Index eased 0.09 of-a-point to 203.91 and the Plantation Index trimmed 11.64 points to 7,949.83, while the Financial Services Index ticked up 23.02 points to 16,717.66.
Meanwhile, the ringgit has extended its upward momentum against the greenback, as the US dollar retreated amidst concerns over the United States’ gross domestic product data which revealed a lower-than-expected reading, said an analyst.
At 9am, the local currency strengthened to 4.2015/2050 against the greenback from 4.2030/2055 at yesterday’s close.
According to news reports, the US annual economic growth in the fourth quarter of 2021 was revised down to 6.9% from the expected 7.1%.
Subsequently, the US dollar index (DXY) declined by 0.62% to 97.79 points as the US Federal Reserve would likely raise its policy rate by 25 basis points, said Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid.
It was the first hike in more than three years, signalling an aggressive stance that has left the bond market fearing a recession down the road.
“However, the ADP Employment Change, which measures job creation in the private sector, stood at 455,000 in February – slightly above the street forecast of 450,000, implying that the labour market remained sturdy,” he said.
Overall, Mohd Afzanizam opined that the ringgit could remain steady at around RM4.20 per US dollar today.
At opening, the ringgit was trading mixed against a basket of major currencies.
The local unit appreciated against the Japanese yen to 3.4357/4388 from 3.4490/4515 yesterday and improved against the British pound to 5.5216/5262 from 5.5248/5281 previously.
However, it slipped against the Singapore dollar to 3.1065/1095 from 3.1034/1058 at yesterday’s close and weakened versus the euro to 4.6956/6995 from 4.6784/6811 previously. – Bernama, March 31, 2022
