Bursa ends lower for second consecutive day

BURSA Malaysia ended lower for the second consecutive day yesterday, tracking the weak global sentiment due to the Middle East conflict, said an analyst.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was down 7.53 points, or 0.49%, to 1,535.00 from Monday’s close of 1,542.53.

Market breadth was negative with decliners overwhelming gainers 1,159 to 133, while 275 counters were unchanged, 785 untraded and 11 others suspended.

Mohd Sedek Jantan, head of wealth research and advisory and designated portfolio manager at UOB Kay Hian Wealth Advisors, said besides rising geopolitical tensions, the weak sentiment was exacerbated by a slowing Chinese economy demonstrated by poor data for China’s retail sales and industrial output.

“Investors are currently grappling with two main concerns, which have intensified fear and triggered panic selling.

“The present risk-off atmosphere is weighing on equities, and the FBM KLCI may continue to consolidate sideways.”

Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the local bourse was lower in tandem with the heavy selling across the region.

He said key regional indices closed lower on growing fears of the escalating conflict in the Middle East, coupled with the broad sell-off on Wall Street overnight which also impacted investor sentiment.

“Back home, the benchmark index failed to hold its 1,538 support level. Hence, we spot the next crucial support level at around 1,528-1,530.

“Despite the cautious sentiment, we see the sell-off as an opportunity for investors to go bargain hunting for stocks at lower levels,” he said. – Bernama