Bursa Malaysia Opens Lower As Iran Keeps Hormuz Closed
By Zufazlin Baharuddin
KUALA LUMPUR, March 13 (Bernama) -- Bursa Malaysia opened lower on Friday, tracking overnight losses on Wall Street after Iran’s new supreme leader signalled the Strait of Hormuz would remain closed.
At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 10.82 points, or 0.63 per cent, to 1,700.19 from Thursday’s close of 1,711.01.
The benchmark index opened 9.07 points lower at 1,701.94.
Market breadth was negative, with 215 decliners outpacing 109 gainers. A total of 202 counters were unchanged, 2,163 untraded and 18 suspended.
Turnover stood at 88.13 million shares valued at RM67.82 million.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said US markets tumbled as all three major indices closed sharply lower, while Brent crude stayed elevated above US$100 per barrel after Iran’s new supreme leader, Mojtaba Khamenei, announced the Strait of Hormuz would remain closed.
This was the first statement issued by Mojtaba since he succeeded his slain father, read out by state television. At the time of writing, Brent crude was down 0.57 per cent at US$99.89 per barrel.
“We suspect foreign funds may be nibbling on local shares and expect this pattern to continue over the short term,” Thong told Bernama, adding the FBM KLCI is likely to hover within the 1,700–1,715 range today.
Malacca Securities Sdn Bhd said the near-term outlook for Wall Street remains subdued, as the US Federal Reserve may defer rate-cut decisions amid persistent inflation concerns.
“Investors will also monitor the release of US fourth-quarter gross domestic product data later today,” it added.
Domestically, the government will hold a special Cabinet meeting today to review the country’s fiscal position and closely monitor developments in Iran following the conflict in West Asia. Prime Minister Datuk Seri Anwar Ibrahim said the move was prompted by escalating regional tensions that could affect the global economy, including Malaysia.
Among heavyweights, Petronas Dagangan slid 24 sen to RM21.70, Tenaga Nasional shed 12 sen to RM14.28, Hong Leong Bank fell 28 sen to RM22.64, IHH Healthcare lost nine sen to RM9.01, and MISC tumbled three sen to RM8.37.
On the most active list, Pharmaniaga and Land & General fell half-a-sen each to 24.5 sen and 14 sen respectively, while Jiankun International rose 1.5 sen to eight sen, Velesto Energy added half-a-sen to 33 sen, and Kronologi Asia climbed 1.5 sen to 15 sen.
Top gainers included Nestle, up 40 sen to RM104.50; SAM Engineering & Equipment, up seven sen to RM3.19; Hengyuan Refining Company and Press Metal Aluminium Holdings, up six sen to RM1.67 and RM7.58 respectively; and Petronas Gas, up 12 sen to RM17.52.
Top losers were Malaysian Pacific Industries, down 30 sen to RM29.50; Kuala Lumpur Kepong, down 22 sen to RM19.56; United Plantation, down 20 sen to RM32.90; Hong Leong Industries, down 24 sen to RM16.74; and Malayan Cement, down 19 sen to RM7.29.
On the index board, the FBM Top 100 Index fell 76.11 points to 12,269.94, the FBM Emas Index declined 73.02 points to 12,428.79, the FBM 70 Index dropped 97.12 points to 17,109.39, the FBM Emas Shariah Index eased 46.22 points to 12,178.86, and the FBM ACE Index fell 23.32 points to 4,379.45.
By sector, the Financial Services Index fell 220.63 points to 20,426.47, the Plantation Index lost 28.25 points to 8,475.98, while the Industrial Products and Services Index rose 0.48 of-a-point to 176.66, and the Energy Index increased 4.64 points to 800.38.
-- BERNAMA