Bursa Malaysia ends lower for second straight day

KUALALUMPUR: Bursa Malaysia extended its downbeat mode for the second consecutive day yesterday as market sentiment continued to be weighed by the latest developments in the local political scenario amid a weak external front.

At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) eased 6.67 points to end trading at 1,441.29 compared with 1,447.96 on Monday.

The market bellwether opened 1.24 points easier at 1,446.72 and moved between 1,435.02 and 1,451.31 throughout the day.

Despite the weak opening, the FBM KLCI started the day higher on bargain hunting activities but the momentum declined therea er as cautious sentiment emerged to curb investors’ risk appetite.

Market breadth was negative with decliners leading advancers 427 to 363, while 415 counters were unchanged, 1,093 untraded, and 14 others suspended.

Turnover increased marginally to 4.57 billion units worth RM2.11 billion versus 4.29 billion units worth RM2.5 billion on Monday.

Rakuten Trade Sdn Bhd vicepresident of equity research Thong Pak Leng said the FBM KLCI remained in negative territory as investors were still wary amid the ongoing uncertainty over the formation of a new government.

“We reiterate that sentiment on local equities will remain vigilant until a new government is formed.

“While we have yet to receive updates on the formation of the new government at this juncture, we maintain the FBM KLCI target for the week at between 1,430 and 1,450, with immediate support at 1,420 and resistance at 1,470,” he told Bernama.

The Yang di-Pertuan Agong AlSultan Abdullah Ri'ayatuddin AlMustafa Billah Shah has ordered the leaders of Pakatan Harapan and Perikatan Nasional for an audience at Istana Negara this a ernoon as no member of the Dewan Rakyat received a simple majority to be appointed as the Prime Minister as provided under Article 43(2)(a) of the Federal Constitution.

His Majesty advised the people to be patient and calm until the process of forming a new government and the nomination of the 10th Prime Minister of Malaysia is completed.

Meanwhile, Asian equities were mixed as risk appetite was influenced by the sluggish overnight performance on Wall Street and renewed concern about an economic slowdown in China following its zero Covid-19 policy.

Among heavyweights on Bursa Malaysia, Public Bank and IHH Healthcare trimmed four sen each to RM4.29 and RM5.92 respectively, while Maybank and CIMB were flat at RM8.54 and RM5.51 respectively.