KL Shares End Broadly Lower, Tracking Regional Slide

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Aug 1 (Bernama) -- Shares on Bursa Malaysia closed broadly lower on Thursday after a lacklustre trading session in tandem with the downbeat performance in regional markets.

Japan's Nikkei 225 Index tumbled 2.49 per cent to 38,126.33, Hong Kong’s Hang Seng Index decreased 0.23 per cent to 17,304.96, and Singapore’s STI Index declined 1.04 per cent to 3,419.84. 

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.32 points or 0.08 per cent to 1,624.25 from yesterday's close of 1,625.57.

The FBM KLCI opened 0.30 of-a-point higher at 1,625.87 and moved in a tight range between 1,621.44 and 1,626.35 throughout the day.

On the broader market, decliners thumped advancers 654 to 442, with 483 counters unchanged, 839 untraded, and 19 others suspended.

Turnover fell to 3.51 billion units worth RM2.71 billion from Wednesday’s 4.42 billion units worth RM3.62 billion.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said even as the Malaysian equities ended broadly lower today, buying interest was seen in technology, energy, and banking counters.

“In Japan, stocks dropped sharply after the Bank of Japan (BoJ) raised its benchmark interest rate to around 0.25 per cent, its highest level since 2008.

“Investors across the region are assessing business activity data from various areas, focusing on July purchasing managers index numbers from China, Japan, and South Korea,” he told Bernama.

Back home, he said the FBM KLCI is stuck in consolidation mode due to cautious trading given the increasing global volatility and uncertainty.

Accordingly, he said the benchmark index needs to break above the 1,630 resistance level to regain bullish momentum.

“If the index manages to close above this level with strong volume, it could target the next resistance at 1,650. Conversely, failure to break this resistance could see the index consolidating further within the 1,610-1,630 range,” he said. 

Thong anticipates the FBM KLCI to trend within the 1,620-1,630 range towards the weekend.

Meanwhile, UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the FBM KLCI closed lower today as Japanese shares plummeted in response to the BoJ's indication of further interest rate hikes, while a rebound in Chinese markets faltered due to disappointing business activity data.

“Investors also paused to digest the US Federal Reserve's decision last night and took profits from yesterday's market rally. However, stocks in the financial services sector continued to lead gains for the third consecutive day as the ringgit strengthened,” he said. 

Among heavyweights, Tenaga Nasional and IHH Healthcare added 2.0 sen to RM14.10 and RM6.32 respectively, Maybank rose 4.0 sen to RM10.26, Public Bank edged up 5.0 sen to RM4.26, while CIMB Group was flat at RM7.43.

Of the actives, Velesto Energy gained half-a-sen to 22 sen, Cape EMS put on 1.0 sen to 69.5 sen, and Securemetric improved 2.0 sen to 25.5 sen, while SMTrack and Ekovest inched down 1.0 sen to 3.0 sen and 44 sen respectively. 

On the index board, the FBM Emas Index declined 6.34 points to 12,510.87, the FBMT 100 Index erased 6.51 points to 12,102.65, the FBM Emas Shariah Index trimmed 34.68 points at 12,727.78, and the FBM ACE Index shed 29.76 points to 5,631.62. 

In contrast, the FBM 70 Index climbed 2.42 points to 18,490.50.

Sector-wise, the Financial Services Index soared 106.89 points to 18,279.97 and the Energy Index perked up 5.73 points to 959.17, but the Plantation Index was 11.72 points lower at 7,191.92, and the Industrial Products and Services Index eased 0.99 of-a-point to 191.01.

The Main Market volume dwindled to 1.92 billion units valued at RM2.42 billion from 2.62 billion units valued at RM3.24 billion on Wednesday.

Warrants turnover shrank to 810.63 million units worth RM105.39 million from 1.16 billion units worth RM155.05 million yesterday.

The ACE Market volume swelled to 727.03 million shares valued at RM186.84 million from 632.07 million shares valued at RM221.80 million previously.  

Consumer products and services counters accounted for 334.25 million shares traded on the Main Market, industrial products and services (409.23 million), construction (227.30 million), technology (180.90 million), SPAC (nil), financial services (96.03 million), property (227.39 million), plantation (21.28 million), REITs (15.22 million), closed/fund (50,000), energy (168.79 million), healthcare (82.59 million), telecommunications and media (37.88 million), transportation and logistics (58.45 million), utilities (61.92 million), and business trusts (3.61 million).

-- BERNAMA