KUALA LUMPUR – Bursa Malaysia opened lower today due to mild profit-taking in selected heavyweights after recent gains, despite the positive trend in the regional markets, dealers said.
At 9.58am, the FTSE Bursa Malaysia KLCI (FBM KLCI) decreased 3.83 points or 0.25% to 1,537.32 from Thursday’s close of 1,541.15.
The benchmark index opened 0.45 of-a-point lower at 1,540.70.
On the broader market, losers led gainers 378 to 293, while 328 counters were unchanged, 1,321 untraded and 40 others suspended.
Turnover stood at 951.39 million units worth RM442.93 million.
Malacca Securities Sdn Bhd said given the strong rebound and follow-through interest on Wall Street, buying support may spill over to technology stocks on the local front, and traders may focus on bashed-down technology leaders as some of their earnings have stabilised in the recent reporting season.
“However, we expect the upside to be limited given the unresolved Ukraine-Russia tension. Nevertheless, we are optimistic about the energy and plantation sectors with Brent oil price hovering above US$115 and crude palm oil trading above RM6,500 per tonne.
“With the strong rebound on Wall Street, technology will be the main focus for the session. Also, since the commodity markets remain elevated, traders may favour the energy and plantation stocks,” it said in a research note today.
Among the heavyweights, Maybank slipped 1.0 sen to RM8.97, Public Bank fell 2.0 sen to RM4.58 and Petronas Chemicals rose 10 sen to RM9.97, while IHH Healthcare and CIMB were flat at RM6.49 and RM5.01, respectively.
Of the actives, Sapura Energy and Cnergenz added 1.0 sen each to 8.5 sen and 68.5 sen, respectively, and Techna-X earned half-a-sen to 5.5 sen, while Ta Win was flat at 12.5 sen.
On the index board, FBM ACE declined 27.91 points to 5,178.07, FBM Emas Shariah Index shed 3.54 points to 11,350.28, FBM Emas Index reduced 16.03 points to 10,968.51, FBMT100 Index decreased 16.05 points to 10,659.76, and FBM70 strengthened 22.89 points to 13,110.98.
Sector-wise, the Industrial Products and Services Index was 0.24 of-a-point better at 198.58, the Financial Services Index gained 19.25 points to 16,570.6, and the Plantation Index advanced 1.26 points to 7,989.95.
Meanwhile, the ringgit opened marginally higher against the US dollar today following the positive development in Shanghai, ahead of the reopening of China’s economy, an analyst said.
At 9am, the local note stood at 4.3920/3945 versus the greenback from Thursday’s close of 4.3950/3990.
SPI Asset Management managing partner Stephen Innes said the Asian foreign exchange will be taking its cue from the yuan as that will be the signal of economic recovery.
“That will be the clearest signpost that China’s economy is improving or that its policymakers are looking to adjust their zero Covid-19 policy more liberally,” he said.
Shanghai is set to lift its Covid-19 lockdown on June 1.
Meanwhile, Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the economic uncertainties due to supply disruptions could threaten the pace of economic recovery.
“As such, the dollar-ringgit will continue to trade in a narrow range today,” he said.
Meanwhile, the ringgit was traded mostly lower against a basket of major currencies.
The local note had eased against the Singapore dollar to 3.1988/2011 from yesterday’s close of 3.1987/2018, slid versus the British pound to 5.5436/5467 from 5.5377/5427 yesterday and decreased versus the euro to 4.7170/7197 from 4.7079/7122 previously.
However, the ringgit rose vis-à-vis the Japanese yen to 3.4577/4600 from 3.4677/4712 yesterday. – Bernama, May 27, 2022
