KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
KUALA LUMPUR (March 25): The FBM KLCI shed 4.67 points or 0.29% to close at 1,597.73 today, while Bursa Malaysia’s Palm Oil Plantation Index fell the most at 1.67%, as crude palm oil (CPO) prices tracked lower crude oil prices.
According to analysts, investors had also weighed a confluence of factors including rumours of political uncertainty in Malaysia, besides the pullback in technology stocks.
TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com that the "KLCI faced a setback today, amid confluence of factors including (rumours on) Malaysia’s political uncertainty, pullback in technology stocks and lower crude oil prices."
Soo said the confluence of factors affecting Malaysian share market sentiment include concerns on "rising inflation in the US and Europe against the backdrop of economic recovery”.
Across Bursa, trading volume stood at 6.01 billion shares, valued at about RM3 billion.
Decliners led gainers by 580 to around 430, as oil palm plantation and technology-related companies ended among Bursa top decliners.
The oil palm plantation-related companies included Kuala Lumpur Kepong Bhd (KLK) and PPB Group Bhd, while technology-related firms included Malaysian Pacific Industries Bhd (MPI) and ViTrox Corp Bhd.
KLK’s share price closed down 24 sen or 1.04% at RM22.92 while PPB fell 24 sen or 1.28% to RM18.54.
KLK and PPB, which are constituents of the 30-stock KLCI, are also included in the Palm Oil Plantation Index.
The Palm Oil Plantation Index specifically tracks share prices of companies which earn a substantial proportion of their revenue from palm oil activities.
The drop in CPO prices today in tandem with lower crude oil prices had not augured well for the Palm Oil Plantation Index constituents.
Prices of Malaysia CPO futures for April and May 2021 closed down RM56 each at RM4,164 and RM4,022 a tonne respectively on the perception that lower crude oil prices may lead to less demand for CPO to produce biodiesel.
Globally today, it was reported that crude oil prices fell more than 1% as fresh coronavirus lockdowns revived worries about demand for oil products, even as tug boats struggled to move a stranded container ship blocking crude oil carriers in the Suez Canal.
"Brent crude futures slid 77 cents, or 1.2%, to US$63.64 a barrel at 0736 GMT, after jumping 6% overnight. US West Texas Intermediate crude futures dropped by 87 cents, or 1.4%, to US$60.31 a barrel, after climbing 5.9% overnight,” Reuters reported.
On Bursa today, the pullback in technology stocks’ prices resulted in the technology index closing down 1.24%, as semiconductor-related companies including MPI and ViTrox took cue from news today on the selloff in Chinese technology shares due to concerns they will be delisted from US bourses, besides updates about a perceived semiconductor shortage globally.
MPI’s share price closed down 44 sen or 1.18% at RM36.82, while ViTrox fell 32 sen or 2.16% to RM14.48.
Meanwhile, rumours of political uncertainty in Malaysia appeared to have led to lacklustre trading interest in the local stock market.
TA Securities’ Soo said "investors are digesting political news" which includes updates on the possible collaboration between DAP and UMNO.
Last Thursday (March 18), news reports quoting DAP national organising secretary Anthony Loke, indicated that DAP is not ruling out the possibility of cooperating with other political parties such as Umno.
It was however reported that the topic has yet to be discussed within the framework of Pakatan Harapan.
Source: The Edge
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