KL shares remain lower over US-China trade concerns

KUALA LUMPUR: Shares on Bursa Malaysia remained lower at yesterday’s close, weighed by weaker sentiment following concerns over the ongoing US-China trade war.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) stood at 1,685.62, down 8.37 points from 1,693.99 at Monday’s close.

The benchmark index opened 11.8 points lower at 1,682.19 and moved between 1,682.19 and 1,691.28 throughout the day.

On the scoreboard, market breadth was negative with 470 losers to 352 gainers, while 407 counters remained unchanged, 640 untraded and 18 others suspended.

Total volume was lower at 2.58 billion units worth RM2.11 billion versus 3.14 billion units valued at RM2.16 billion on Monday.

A dealer said investors were closely monitoring updates on the ongoing trade deal between the two economic powerhouses, especially with the US’ announcement to suspend a scheduled tariff increase on Chinese goods “until further notice”.

US President Donald Trump was reported as saying that he would walk away if things did not work out well in the business negotiations.

“On top of that, both countries are currently facing economic slowdown, resulting in slower business activities worldwide,” he said.

On the home front, he said the disappointing corporate earnings in the fourth quarter ended Dec 31, 2018, were among the worst seen in recent years.

“I think most of the companies are still digesting the results and might be revising down their outlook and growth targets for this year as the global economy is still growing at a moderate pace,” he added.

Tenaga, for example, posted its first quarterly loss in more than seven years on higher operating costs and increased impairment of financial instruments.

The utility company recorded a net loss of RM134 million for the three months ended Dec, 31, 2018.

Other heavyweights, Maybank fell one sen to RM9.53, Public Bank slipped two sen to RM24.60, Tenaga declined 16 sen to RM12.80, and Petronas Chemicals was flat at RM9.19.

Of actives, Bumi Armada and Sapura Energy slipped half-asen each to 17 sen and 31.5 sen, respectively, Dayang Enterprise down five sen to RM1.31, while VS Industry was five sen better at RM1.08.

The FBM Emas Index decreased 36.80 points to 11,729.81, the FBMT 100 Index fell 37.71 points to 11,626.85 and the FBM Emas Shariah Index shed 36.87 points to 11,589.14.

The FBM 70 rose 36.25 points to 13,992.32 and the FBM Ace Index appreciated 7.41 points to 4,688.91.

Sector-wise, the Financial Services Index lost 91.41 points to 17,630.81, the Plantation Index added 6.99 points to 7,272.99, while the Industrial Products and Services Index inched up 0.02 of-a-point to 167.96.

Main Market volume decreased to 1.76 billion shares worth RM1.93 billion from 2.20 billion shares valued at RM1.94 billion.

Warrants turnover fell to 516.76 million units worth RM116.06 million versus 586.41 million units valued at RM139.31 million.

Volume on the ACE Market decreased to 302.50 million shares worth RM67.80 million from 346.79 million shares worth RM77.92 million.

Consumer products and services accounted for 269.31 million shares traded on the Main Market, industrial products and services (339.41 million), construction (132.88 million), technology (156.08 million), SPAC (nil), financial services (48.87 million), property (128.36 million), plantation (54.83 million), REITs (3.71 million), closed/fund (nil), energy (503.26 million), healthcare (39.61 million), telecommunications and media (31.18 million), transportation and logistics (31.02 million), and utilities (21.78 million).

For further information on stocks and prices, please visit www.bursamalaysia.com.