KL shares end lower on US interest rate increase concerns

KUALA LUMPUR: Bursa Malaysia, which was in the negative territory the whole day, closed lower on weak buying sentiment following the US Federal Reserve System’s (Fed) comments on a possible interest rate rise soon.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) ended at 1,623.80 points, 2.97 points weaker from Thursday’s close of 1,626.77.

After opening 2.61 points easier at 1,624.16, the index moved between 1,617.7 and 1,626.52 points throughout the day.

Losers outpaced gainers 402 to 356 with 353 counters unchanged, 605 untraded and 16 others were suspended.

Volume increased to 1.39 billion shares worth RM1.51 billion from 1.38 billion shares worth RM1.46 billion previously.

Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said Fed Chair Janet Yellen’s remarks strengthened the possibility of an interest rate increase as soon as next month.

“This will widen the interest rate differentials between the US and Malaysia and pull ‘hot money’ out of ringgit-denominated bonds into US dollar-denominated bonds.

“The weaker ringgit, which fell to its 10-month low today to touch the 4.40 level, also weighed down on the FBM KLCI,” he told Bernama.

Among heavyweights, TNB was flat at RM14.22, Maybank fell seven sen to RM7.68 and Public Bank eased four sen to RM19.52.

Of the actives, APFT increased one sen to eight sen, RGB fell half-a-sen to 25.5 sen and Hibiscus Petroleum was unchanged at 26 sen.

On the scoreboard, the FBM Emas Index fell 0.6 of-a-point to 11,459.21, FBMT100 Index eased 0.46 point to 11,170.41 and the FBM Emas Syariah Index lost 5.75 points to 12,093.22.

The FBM 70 was up 71.5 points to 13,394 and the FBM Ace surged 20.76 points to 5,005.17.

Sector-wise, the Industrial Index fell 9.56 points to 3,064.17, Finance Index gave up 21.64 points to 14,117.02 and the Plantation Index eased 25.86 points to 7,768.48.

Main Market turnover contracted to 896.19 million units worth RM1.42 billion from 949.28 million units worth RM1.38 billion on Thursday.

The ACE Market volume declined to 190.25 million shares worth RM35.23 million from 204.91 million shares worth RM30.07 million previously.

Warrants surged to 300.33 million units valued at RM55.66 million from 231.8 million units valued at RM49.79 million on Thursday.

Consumer products accounted for 55.86 million shares traded on the Main Market, industrial products (177.18 million), construction (44.83 million), trade and services (385.05 million), technology (53.37 million), infrastructure (11.73 million), SPAC (52.96 million), finance (46.98 million), hotels (150,000) properties (32.49 million), plantations (25.08 million), mining (7,000), REITs (10.44 million), and closed/fund (22,000). — Bernama