Bursa M’sia ends slightly lower, FBM KLCI stays above key 1,600

KUALA LUMPUR: Bursa Malaysia’s benchmark index ended slightly lower after trading in a range-bound mode as selling interspersed with buying in selected heavyweights, mainly in plantation, banking and oil and gas stocks, dealers said.

At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was 3.93 points, or 0.24 per cent, lower at 1,600.79 compared with Wednesday’s close of 1,604.72.

The key index opened 0.79 of-a-point better at 1,605.51 and moved between 1,597.95 and 1,606.13 throughout the day. On the broader market, advancers thumped decliners 597 to 422, while 422 counters were unchanged, 830 untraded, and 16 others suspended. Total turnover decreased to 3.34 billion units worth RM2.54 billion from 3.43 billion units worth RM2.47 billion on Wednesday.

A dealer noted that the local bourse opened marginally higher but retreated thereafter, taking cue from the weaker global markets after the United States Federal Open Market Committee reiterated its hawkish stance in its latest meeting minutes.

“The Federal Reserve (Fed), in the latest minutes, revealed its plans to hike interest rates and pare its balance sheet by more than US$1 trillion (US$1=RM4.21) a year. This has raised concerns on the risks the action could imply to economic growth, which sparked volatility in the market,” he said.

Rakuten Trade Sdn Bhd vicepresident of equity research Thong Pak Leng told Bernama that key regional indices were also in the red following overnight selldown on Wall Street, with Japanese and Hong Kong markets plunging on Fed’s minutes and plans to tackle US inflation which is running at a four-decade high and threatening to limit the nation’s economic growth.

“On the domestic front, we believe the 1,600-level to remain a critical factor to determine the near-term outlook for the benchmark index. If the FBM KLCI is able to sustain above the 1,600 mark for a longer period, we reckon the outlook for the benchmark index will be positive in the mid term.

“As for now, we advise investors to stay alert on the increasing market risks and volatility and external uncertainties. Hence, we expect the FBM KLCI to trade within the 1,590 to 1,610 range towards the weekend,” he added.

Regionally, Hong Kong’s Hang Seng Index fell 1.23 per cent to 21,808.98, Japan’s Nikkei 225 declined 1.69 per cent to 26,888.57, Singapore’s Straits Times Index shed 0.55 per cent to 3,404.23, and South Korea’s Kospi slipped 1.43 per cent to 2,695.86.

On the local front, among the heavyweights, Maybank fell six sen to RM8.83 and Public Bank shed three sen to RM4.68.