Bursa ends lower on profit-taking

KUALA LUMPUR: Bursa Malaysia closed lower on the first day of the trading week weighed by profit-taking in heavyweights, particularly Tenaga Nasional and banking sectors, said an analyst.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said today’s sell-off was seen as an opportunity for bargain-hunting in severely beaten-down stocks, particularly blue chips, due to their more attractive valuations.

“As we approach the year-end, we expect some portfolio realignments and window-dressing activities to occur.

“Therefore, we anticipate the FTSE Bursa Malaysia KLCI (FBM KLCI) to stage a rebound in the near term and trend within the range of 1,600-1,630 for the week,” he told Bernama.

Meanwhile UOB Kay Hian Wealth Advisors head of investment research Sedek Jantan said today’s decline reflects market reaction to China’s latest stimulus package, which was smaller than anticipated, coupled with softer inflation data released over the weekend.

“Together, these factors have reignited concerns over the recovery pace in the world’s second-largest economy.

“Locally, the absence of strong catalysts and the scheduled third-quarter 2024 corporate earnings announcements have added to the selling pressure on the bourse,” said Sedek.

He also said that investor interest has also shifted towards the US market, buoyed by post-election optimism and a promising economic outlook that has attracted capital inflows.

While he expects some spill-over benefits to eventually reach domestic stocks, particularly in the manufacturing and technology sectors, recent discussions around potential tariffs by former president Donald Trump may increase volatility.

“This is as investors remain cautious about the possibility of renewed trade tensions and disruptions to the global economic landscape,” Sedek added.

At 5pm, the FBM KLCI fell 0.73% or 11.98 points, to close at 1,609.26 compared with Friday’s close of 1,621.24.

The benchmark index, which opened 4.39 points higher at 1,625.63, moved between 1,609.24 and 1,627.23 during the trading session.

Market breadth was negative with decliners thumping gainers 685 to 357, while 480 counters were unchanged, 885 untraded, and 15 suspended.

Turnover narrowed to 2.67 billion units valued at RM2.02 billion versus 2.69 billion units worth RM1.86 billion on Friday.

Among the heavyweights, MrDIY trimmed 4 sen to RM2.12, Petronas Chemicals lost 9 sen to RM4.84, Public Bank shed 8 sen to RM4.41, Maybank dropped 16 sen to RM10.34, and Hong Leong Bank slid 26 sen to RM20.28.

Of the most active counters, Azam Jaya jumped 31 sen to RM1.09, Mega Fortris erased 1.5 sen to 65.5 sen, Velesto slipped 0.5 sen to 18.5 sen, Talam Transform added 0.5 sen to 3 sen, and Cape EMS rose 1 sen to 37 sen. Azam Jaya and Mega Fortris debuted on Bursa today.

On the index board, the FBM Emas Index fell 85.98 points to 12,179.88, the FBMT 100 Index lost 85.37 points to 11,881.09, and the FBM Emas Shariah Index dropped 56.84 points to 12,174.96.

The FBM 70 Index declined 116.17 points to 17,749.22 and the FBM ACE Index shaved 18.29 points to 5,126.63.

Sector-wise, the financial services index decreased 195.24 points to 19,061.78 and the industrial products and services index eased 1.08 points to 171.53.

The energy index shed 1.27 points to 832.81 while the plantation index advanced by 131.3 points to 7,762.88.

The Main Market volume increased to 1.44 billion units worth RM1.79 billion against Friday’s 1.23 billion units valued at RM1.54 billion.

Warrants turnover dwindled to 869.43 million units valued at RM91.02 million from 1.04 billion units worth RM147.77 million previously.

The ACE Market volume slipped to 358.1 million units worth RM140.47 million compared with 414.81 million units valued at RM166.43 million last Friday.

Consumer products and services counters accounted for 207.07 million shares traded on the Main Market, industrial products and services (324.29 million), construction (132.5 million), technology (144.27 million), SPAC (nil), financial services (66.8 million), property (173.49 million), plantation (127.54 million), REITs (26.38 million), closed/fund (34,600), energy (119.29 million), healthcare (49.54 million), telecommunications and media (11.92 million), transportation and logistics (33.12 million), utilities (32.02 million), and business trusts (93,200).

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