KUALA LUMPUR – Bursa Malaysia opened lower but turned mixed thereafter today as bargain hunting activities emerged, despite negative cues from the global equities market, a dealer said.
At 9.10am, the FTSE Bursa Malaysia KLCI went up 1.55 points to 1,412.87 from yesterday’s close of 1,411.32.
The barometer index opened 2.49 points lower at 1,408.83.
However, on the broader market, losers surpassed gainers 131 to 112, while 203 counters were unchanged, 1,830 untraded and eight others suspended.
Turnover stood at 95.71 million units worth RM39.55 million.
Rakuten Trade Sdn Bhd vice-president of equity research, Thong Pak Leng, said Wall Street had declined as US inflation hit a 40-year high at 9.1%, exacerbating fears that the US Federal Reserve will be aggressive with its rate hikes.
On the home front, he said sentiments in the market remained cautious, but bargain-hunting activities may ensue as the benchmark index comes closer to its support level of 1,400.
“We expect the index to hover within the 1,405-1,425 range today,” he said.
Among the heavyweights, Maybank and CIMB stayed flat at RM8.61 and RM5.09, respectively, Public Bank eased 1 sen to RM4.36, Petronas Chemicals added 3 sen to RM7.91, and IHH Healthcare rose 4 sen to RM6.46.
Of the actives, Metronic increased 1.5 sen to 8.5 sen, MAG and Borneo Oil stayed flat at 18 sen and 2.5 sen, respectively, and XOX Networks gained 1 sen to 3 sen.
On the index board, the FBM Emas Index went up 10.80 points to 10,034.40, the FBM Emas Shariah Index ticked up 17.81 points to 10,057.73, the FBM 70 was 18.46 points higher at 12,055.86, the FBMT 100 Index improved 11.76 points to 9,797.73, and the FBM ACE edged up 31.16 points to 4,570.14.
Sector-wise, the Financial Services Index declined 11.93 points to 16,008.27, the Industrial Products and Services Index was 0.63 of-a-point higher at 167.34, and the Plantation Index weakened 17.43 points to 6,669.27.
Meanwhile, the ringgit extended yesterday’s gains to open slightly higher against the US dollar today on continued buying interest, despite a bearish outlook for emerging currencies, including the ringgit, dealers said.
At 9am, the local currency edged up to 4.4350/4390 versus the greenback from yesterday’s close of 4.4360/4385.
ActivTrades trader Dyogenes Rodrigues Diniz said the greenback took on a positive tone, supported by the release of Consumer Price Index data that came in above expectations at 9.1% versus the forecast of 8.8%.
“This was the largest increase in inflation since November 1981, making room for more severe measures by the United States Federal Reserve, which is likely to accelerate the US interest rates hike.
“If the interest rate rises very quickly in the US, this will cause countries to start selling their local currencies to buy more dollars and then buy US government bonds,” he said today.
Meanwhile, the local unit was traded mostly higher against a basket of major currencies.
It appreciated against the British pound to 5.2599/2647 from 5.2753/2783 yesterday, increased versus the euro to 4.4456/4497 from 4.4524/4549 and strengthened vis-a-vis the Japanese yen to 3.2159/2190 from 3.2358/2379 yesterday.
However, the ringgit was lower against the Singapore dollar at 3.1781/1816 from 3.1559/1582 previously. – Bernama, July 14, 2022
