Bursa Malaysia Opens Higher But Retreats Thereafter
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, March 6 (Bernama) -- Bursa Malaysia opened higher today, tracking the rally on Wall Street overnight as the United States (US) automotive makers get temporary tariff reprieve, but it retreated thereafter on selling pressure.
At 9.10 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 4.36 points to 1,568.78 but it slipped by 6.91 points to 1,557.51 after slightly over one hour of trading compared with yesterday’s close of 1,564.42.
The benchmark index opened 4.53 points higher at 1,568.95.
On the broader market, losers surpassed gainers 317 to 309, while 363 counters were unchanged, 1,353 untraded and seven suspended.
Turnover stood at 901.83 million shares worth RM460.12 million.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said the US’s one-month tariff reprieve for automotive makers has led to expectations that it could be extended to other industries.
“Nonetheless, uncertainties remain, with potential inflationary pressure that saw the US 10-year yield higher at 4.28 per cent,” he told Bernama.
Over in Hong Kong, he said the Hang Seng Index rebounded to almost the 23,600 mark led by CK Hutchison Holdings following its proposed disposal of assets worth US$23 billion near the Panama Canal.
Meanwhile, Thong said China’s Premier Li Qiang, during the opening of the National People’s Congress, alluded to another five per cent growth for China’s gross domestic product this year plus more fiscal spending.
Back home, Thong expects the collaboration with Arm Holdings Plc to fast-track Malaysia’s technology sector up the value chain and could be a catalyst for the sector as this will benefit existing players significantly.
“Judging from the positive regional performance, we believe the flight of foreign funds may have started, thus expecting the index to hover within the 1,565-1,575 range today,” he added.
Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said the FBM KLCI is expected to trade higher following gains on Wall Street overnight, as US has agreed to postpone the newly imposed automotive tariffs on Mexico and Canada.
“Additionally, China's annual legislative meeting has set an economic growth target of about five per cent for the year, despite concerns over the potential negative impact of an escalating trade war with the US. This development has, at least for the time being, bolstered investor confidence,” he added.
Among heavyweights, IHH Healthcare added 4.0 sen to RM7.41, Public Bank lost 3.0 sen to RM4.60, CIMB went down 17.0 sen to RM7.63, Tenaga Nasional dipped 14.0 sen to RM13.68, while Maybank was flat at RM10.58.
As for actives, G3 Global and Dagang NeXchange inched up half-a-sen each to 1.5 sen and 26.5 sen, respectively, My E.G. Services put on 3.0 sen to 94.0 sen, while NexG and SFP Tech Holdings eased half-a-sen each to 25.5 sen and 28.0 sen, respectively.
On the index board, the FBM Emas Index fell 39.17 points to 11,574.82, the FBMT 100 Index weakened 40.06 points to 11,357.22, the FBM Emas Shariah Index declined 13.59 points to 11,232.12, the FBM 70 Index slipped 16.52 points to 16,379.53, and the FBM ACE Index shrank 34.08 points to 4,552.20.
By sector, the Industrial Products and Services Index inched down 0.09 of-a-point to 155.37, the Energy Index shed 4.32 points to 723.34, the Financial Services Index dropped 137.24 points to 19,165.71, and the Plantation Index climbed 32.83 points to 7,542.30.
-- BERNAMA