Bursa Malaysia Retreats Amid Global Sell-off On Concerns Over World Economic Outlook

By Nurul Jannah Kamaruddin

KUALA LUMPUR, Sept 4 (Bernama) -- Bursa Malaysia ended lower on Wednesday, tracking an equity rout worldwide after weak US data fuelled fears of a slowdown in global economic growth.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 6.41 points, or 0.38 per cent, to 1,670.24, down from Tuesday's close. The key index opened 14 points lower at 1,662.65 and moved between 1,675.53 and 1,662.22 throughout the day.

Following the broad-based sell-off, 813 counters ended in the red compared to 307 gainers, while 438 counters were unchanged, 883 untraded, and nine were suspended.

Turnover, however, was higher at 3.04 billion units valued at RM2.89 billion from Tuesday's 2.98 billion units valued at RM2.94 billion.

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the latest Institute for Supply Management (ISM) survey of purchasing managers for US manufacturing in August showed a fifth month of contraction and came in below expectations. Despite the bearishness, he said there has been a shift in the inflow of funds into emerging markets, including Malaysia, as investors sought growth opportunities outside of the US amid concerns about a weakening domestic economy.

"Within the FBM KLCI, financial and telecommunication stocks led the performance. Notably, the Bursa Malaysia telecommunication index was the only sector index to close in positive territory, suggesting a preference for companies with strong fundamentals, growing earnings, and attractive dividend yields," he added.

He also anticipates that Bank Negara Malaysia will maintain the overnight policy rate (OPR) at its upcoming announcement tomorrow, ahead of an expected US interest rate cut in September.

"A stable interest rate environment is generally conducive to a more attractive stock market. Globally, investors will be closely monitoring key US employment data, culminating in the release of the August non-farm payrolls report on Friday," he said.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the dip in the benchmark index would present a timely opportunity for bargain hunting as the fundamentals of Malaysian corporates remain solid. "With the index pulling back due to external market pressures and profit-taking, investors with a long-term view may find this an ideal moment to accumulate quality shares at a discount. As such, we maintain our FBM KLCI target for the week between 1,670 and 1,700," he said.

Among the heavyweight stocks, Maybank gained 10 sen to RM10.80, Public Bank and CIMB fell four sen to RM4.76 and RM8.21, respectively, while Tenaga Nasional was flat at RM14.90 and IHH Healthcare added one sen to RM6.39.

In active counters, TWL was flat at 2.5 sen, Vetece declined one sen to 58.5 sen, Cape EMS and Elridge Energy were 1.5 sen weaker at 35.5 sen and 42.5 sen, respectively, while Velesto eased half-a-sen 20 sen.

On the index board, the FBM Emas Index dropped 68.86 points to 12,428.76, the FBM Emas Shariah Index lost 86.39 points to 12,224.94 and the FBMT 100 Index shed 61.87 points to 12,128.39. 

The FBM 70 Index fell 146.20 points to 17,370.29 while the FBM ACE Index erased 66.87 points to 5,157.93.

Sector-wise, the Financial Services Index slid by 18.86 points to 19,643.15, the Industrial Products and Services Index eased by 1.89 points to 178.07, the Energy Index slipped by 18.86 points to 897.72 while the Plantation Index improved by 3.81 points to 7,251.84.

The Main Market volume declined to 1.62 billion units worth RM2.59 billion from 1.71 billion units worth RM2.65 billion on Tuesday.

Warrant turnover widened to 816.31 million units valued at RM100.37 million from 683.58 million units valued at RM83.38 million previously.

The ACE Market volume expanded to 607.66 million shares worth RM196.10 million from 579.20 million shares worth RM214.59 million yesterday.

Consumer products and services counters accounted for 201.24 million shares traded on the Main Market, industrial products and services (264.64 million), construction (144.70 million), technology (214.27 million), SPAC (nil), financial services (120.74 million), property (318.20 million), plantation (17.79 million), REITs (15.78 million), closed/fund (11,300), energy (151.17 million), healthcare (32.31 million), telecommunications and media (35.61 million), transportation and logistics (43.22 million), utilities (56.62 million), and business trusts (74,100).

-- BERNAMA