Bursa Malaysia Ends 1.24 Pct Lower, Reflecting Heavy Selling Pressure Regionally

By Harizah Hanim Mohamed

KUALA LUMPUR, Sept 11 (Bernama) -- Bursa Malaysia finished 1.24 per cent lower today, mirroring the heavy selling pressure that prevailed throughout the region amid concerns over the US Federal Reserve's (Fed) delayed monetary policy easing.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) lost 20.55 points to 1,639.80 from yesterday’s close of 1,660.35.

The benchmark index, which opened 6.78 points weaker at 1,653.57, moved between 1,638.90 and 1,654.38 throughout the day.

Market breadth was negative with losers outpacing gainers 825 to 283, while 432 counters were unchanged, 926 untraded and six suspended.

Turnover fell to 2.96 billion units worth RM3.33 billion from 3.05 billion units worth RM3.78 billion on Tuesday.

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the FBM KLCI mirrored the regional trend despite positive performance on Wall Street, as investors locked in profits while awaiting clearer market direction.

“Investor sentiment remained cautious due to multiple factors. This morning’s 90-minute debate between (US presidential candidates) Donald Trump and Kamala Harris ended without a clear winner unlike Joe Biden’s previous defeat in his debate with Trump, which added to market uncertainty,” he told Bernama.

He pointed out that all eyes would be glued on the release of US Consumer Price Index (CPI) data later in the day, further heightening investor caution.

“Based on prior inflation data and August economic indicators, headline CPI is expected to increase by 0.2 per cent month-on-month, consistent with July’s rise. However, the year-on-year CPI is projected to ease to 2.6 per cent, down from 2.9 per cent in July.

“These inflation figures are crucial as they will influence the Federal Reserve’s decision on a potential rate cut next week, with market expectations currently leaning towards a 25-basis point reduction,” he added.

Mohd Sedek said that despite the current cautious sentiment, the downside risks are limited due to Malaysia’s domestic economic resilience, steady corporate earnings, strong foreign investment, ongoing political stability, and potential shifts in Fed policy, along with a strengthening ringgit and growing foreign investor risk appetite.

Rakuten Trade Sdn Bhd equity research vice-president, Thong Pak Leng said US inflation reports due this week could impact the size of the Fed’s upcoming rate cuts.

“The worst scenario for the Fed would be a resurgence in inflation alongside a weakening job market, as addressing either issue would require conflicting actions,” he said.

On the local front, the brokerage firm maintained a cautious stance given the growing global volatility and uncertainty.

“With that being said, the solid fundamentals of the Malaysian economy and companies suggest that bargain hunting could emerge with stocks trading at attractive levels. As such, we anticipate the benchmark index to trend within the range of 1,640-1,670 for the rest of the week,” he said.

Despite the eleventh hour buying in Maybank, which saw the counter rise four sen to RM10.68, it was unable to lift the FBM KLCI.

Heavyweight counters that contributed to the lower index included CIMB, which fell 22 sen to RM8.27, Public Bank and IHH Healthcare, which decreased 11 sen each to RM4.70 and RM6.75, respectively.

Meanwhile, Petronas Dagangan eased 48 sen to RM18.60 and Petronas Chemicals was down eight sen to RM5.35.

Globetronics was the most active stock, climbing three sen to 57 sen. Sapura Energy was flat at 3.5 sen, 99 Speed Mart added one sen to RM1.90, and OCR Group was unchanged at five sen.

As for the top losers, Nestle fell RM1.50 to RM100.50, Allianz retreated 80 sen to RM21.00, Malaysian Pacific deducted 38 sen to RM26.82, and Kuala Lumpur Kepong was 36 sen easier at RM20.80.

On the index board, the FBM Emas Index sank 149.22 points to 12,150.68, the FBM Emas Shariah Index lost 96.64 points to 11,911.57, and the FBMT 100 Index dipped 147.11 points to 11,873.20.

The FBM 70 Index shaved 202.90 points to 16,876.43 while the FBM ACE Index trimmed 45.18 points to 4,993.78.

By sector, the Financial Services Index dropped 335.29 points to 19,595.84, the Energy Index erased 24.43 points to 835.18, the Plantation Index weakened 82.46 points to 7,146.36, and the Industrial Products and Services Index slid 1.18 points to 170.81.

The Main Market volume shrank to 1.74 billion units worth RM3.11 billion from 1.88 billion units worth RM3.57 billion on Tuesday.

Warrant turnover improved to 851.72 million units valued at RM94.41 million from 772.11 million units valued at RM82.16 million previously.

The ACE Market volume narrowed to 372.11 million units worth RM121.93 million compared to 402.39 million units worth RM136.17 million yesterday.

Consumer products and services counters accounted for 256.5 million shares traded on the Main Market, industrial products and services (272.46 million), construction (190.31 million), technology (305.5 million), SPAC (nil), financial services (157.19 million), property (171.88 million), plantation (16.81 million), REITs (16.57 million), closed/fund (600), energy (170.32 million), healthcare (45.29 million), telecommunications and media (30.57 million), transportation and logistics (35.47 million), utilities (70.07 million), and business trusts (975,600).

-- BERNAMA