As global markets display a lackluster performance, primarily due to uncertainties surrounding China’s economy, Bursa Malaysia opened to a softer start today, reflecting the broader economic sentiments.
At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI), a key market index, diminished by 2.58 points, dropping to 1,384.75 from the previous day’s close at 1,387.33. The same index had opened with a slight easing at 1,387.24.
Looking at the broader market, there were more losers than winners, with 145 counters falling against 94 rising, while 203 remained stagnant. Additionally, 1,841 counters were untraded, and 16 others suspended, marking a turnover of 160.59 million units, valued at RM63.15 million. Rakuten Trade Sdn Bhd’s equity research vice-president, Thong Pak Leng, mentioned that while Wall Street was closed for a bank holiday on Monday, the futures hinted at a possible weak opening for US equities today, causing most regional markets to end in red.
In Asia, the Hang Seng Index in Hong Kong slipped by 127 points, falling below the 20,000 mark. This happened as traders grew increasingly impatient over China’s limited stimulus to the financial market, noted Thong.
On the home front, the FBM KLCI managed to limit its losses, ending slightly lower due to the general buying trend that emerged in the afternoon session. This was triggered by the Prime Minister’s announcement of market reform plans aimed at reviving the local stock market, including a cut in stamp duty for equities trading.
Thong commented, “The latest rate and ceiling are good attempts to enhance market participation. Whether this will positively reflect in the local bourse remains to be seen, but we believe overall sentiment should be boosted somewhat from the move.”
In terms of heavyweight shares, CIMB and IHH Healthcare each fell by four sen to RM5.04 and RM5.88, respectively, while Tenaga Nasional slipped six sen to RM9.16. Meanwhile, Maybank and Public Bank remained flat at RM8.65 and RM3.87, respectively. Among active shares, Sarawak Consolidated dropped one sen to 41 sen, while Classita and Top Glove warrant both eased by half-a-sen each to 8.5 sen. Meanwhile, TWL Holdings warrant added one sen to 1.5 sen and YTL slipped three sen to 93.5 sen.
Sector-wise, there was a decline across the board, with the Energy Index, Industrial Products and Services Index, Financial Services Index, and the Plantation Index all registering losses. Bursa Malaysia reflects the larger global concerns revolving around China’s economy, making for a cautious market environment domestically.
This news is based on Malay News