Bursa Malaysia Ends Lower On US Rate Cut Uncertainty

By Harizah Hanim Mohamed

KUALA LUMPUR, Sept 9 (Bernama) -- Shares on Bursa Malaysia retreated at the close on Monday, reflecting a lack of investor interest influenced by concerns regarding developments in the United States (US) and uncertainty about the magnitude of US interest rate cuts. 

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 1.63 points to 1,651.49, down from 1,653.12 at Friday's close.

The FBM KLCI had opened 5.92 points lower at 1,647.20 and fluctuated between 1,642.31 and 1,659.11 during the session.

Across the broader market, decliners outpaced gainers, 738 to 333, with 439 counters unchanged, 944 untraded and 16 suspended. 

Turnover increased to 3.38 billion units, valued at RM3.85 billion, compared to 2.35 billion units worth RM3.06 billion on Friday.

Rakuten Trade Sdn Bhd’s equity research vice-president, Thong Pak Leng, said major regional indices ended lower after weak US economic data heightened concerns that the US Federal Reserve might be falling behind in supporting the world's largest economy.

“While a September Fed rate cut is essentially certain, investors are uncertain about the extent of the cuts.

“On the local front, the benchmark trended within a tight range as investors remained cautious and hesitant to take long positions due to high volatility in global equities," he told Bernama.

Thong said the FBM KLCI would likely remain in consolidation mode until new catalysts emerge.

“Despite this short-term consolidation, the longer-term trend remains upward as the index continues to hold above the 50-day exponential moving average. 

“We anticipate the index to fluctuate within the 1,650-1,670 range for the week, with immediate resistance at 1,680 and support at 1,645," he added.

UOB Kay Hian Wealth Advisors’ head of investment research, Mohd Sedek Jantan, indicated that today’s trading was driven by bargain hunting, with investors looking to accumulate positions in large-cap stocks.

“Last week’s pullback in equities appears to be a correction within a broader bull market rather than a signal of a significant downturn.

“Additionally, today marked the first trading day following the IPO of a mini-market chain, whose stock surged by more than 10 per cent, boosting other consumer sector stocks on Bursa," he added.

Mohd Sedek added that investor focus is expected to shift towards fundamentally strong companies with high dividend yields and defensive sector exposure.

CIMB emerged as the top gainer among heavyweights, rising 12 sen to RM8.28. Maybank improved 10 sen to RM10.90, IHH was up 12 sen at RM6.72, while Public Bank and CelcomDigi advanced five sen to RM4.80 and RM3.71, respectively.

Newly-listed 99 Speed Mart stood out as the most active, surging 23 sen to RM1.88. MISC also gained ground, adding 13 sen to hit RM7.92, while Gamuda declined six sen to RM7.41.

Among active counters, Velesto Energy lost 10 sen to 18.5 sen, Pegasus Heights and EA Holdings remained flat at half a sen each. YTL Corporation decreased 10 sen to RM2.39, and YTL Power fell 15 sen to RM3.37.

On the index board, the FBM Emas Index shed 25.77 points to 12,250.29, the FBM Emas Shariah Index decreased by 75.91 points to 12,001.34, and the FBMT 100 Index slid by 22.66 points to 11,962.55.

The FBM 70 Index dipped by 73.10 points to 17,021.35, while the FBM ACE Index fell by 28.40 points to 5,056.05.

By sector, the Financial Services Index soared by 131.38 points to 19,733.86, the Industrial Products and Services Index slid by 2.04 points to 173.26, the Energy Index weakened by 17.32 points to 857.87, while the Plantation Index was 76.60 points higher at 7,166.80.

The Main Market volume expanded to 2.20 billion units worth RM3.64 billion, up from 1.60 billion units worth RM2.88 billion on Friday.

Warrant turnover jumped to 705.37 million units valued at RM74.41 million, up from 345.70 million units valued at RM29.40 million previously.

The ACE Market volume was higher at 468.17 million units worth RM135.1 million, compared to 408.21 million units worth RM143.08 million last Friday.

Consumer products and services counters accounted for 640.69 million shares traded on the Main Market, industrial products and services (300.75 million), construction (239.81 million), technology (157.31 million), SPAC (nil), financial services (136.10 million), property (264.05 million), plantation (12.14 million), REITs (11.0 million), closed/fund (23,400), energy (214.29 million), healthcare (36.79 million), telecommunications and media (28.96 million), transportation and logistics (31.62 million), utilities (135.95 million), and business trusts (354,300).

-- BERNAMA