Market Daily Report: Bursa ends lower on weak risk appetite

KUALA LUMPUR (Aug 10): Bursa Malaysia closed lower on Wednesday (Aug 10) in sync with regional bourses, as risk appetites were affected by the US inflation data amidst the ongoing corporate earnings season.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 5.35 points to 1,492.33 from Tuesday’s close of 1,497.68, weighed down by selling in selected index-linked counters, led by Hartalega Holdings Bhd.

The benchmark index, which opened 1.96 points easier at 1,495.72, remained in negative territory throughout the day, moving in a tight range between 1,490.22 and 1,496.25.

The broader market was negative as losers beat gainers 601 to 242, while 395 counters were unchanged, 1,047 untraded and eight others suspended.

Total turnover decreased to 2.17 billion units worth RM1.68 billion from 2.52 billion units worth RM1.26 billion on Tuesday.

Malacca Securities Sdn Bhd analyst Kenneth Leong said the key index turned lower on profit-taking in heavyweights, particularly Petronas-linked, banking and gloves counters.

He said the sharp decline in Hartalega’s share price was attributed to the company’s weak quarterly results, which in turn affected the performance of the key index.

Hartalega tumbled 35 sen or 12.5% to RM2.45 with 32.04 million shares changing hands.

“Bursa Malaysia was mainly weighed by Hartalega while investors are unwinding their positions amid the uncertainty over the release of US inflation data tonight that will provide further guidance over the pace of interest rate hike next month,” he told Bernama.

Leong said investors will also be monitoring the ongoing batch of corporate earnings releases that might determine the movement of the local market, citing the downside risk is pegged at 1,460, while the resistance is spotted at 1,530.

Meanwhile, Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said key regional markets trended broadly lower following negative cues from Wall Street overnight, with heavy selling in technology stocks on the tech-heavy Nasdaq.

He also said the ongoing geopolitical worries between the US and China over Taiwan also continued to weigh on market sentiment.

“We reckon the benchmark index to remain sideways, within the 1,490-1,510 range for the remainder of the week,” he said, adding the immediate resistance stood at 1,510 and support at 1,480.

Among other heavyweights, Malayan Banking Bhd added one sen to RM8.90, and CIMB Group Holdings Bhd, too, rose one sen RM5.30. Petronas Chemicals Group Bhd added two sen to RM8.72, while IHH Healthcare Bhd also leapt two sen to RM6.42. Public Bank Bhd eased three sen to RM4.63.

Of the actives, G3 Global Bhd slipped half-a-sen to 3.5 sen, Top Glove Corp Bhd lost 5.5 sen to 93 sen, Metronic Global Bhd was flat at 5.5 sen, while Dagang NeXchange Bhd eased two sen to 87 sen.

On the index board, the FBM Emas Index decreased 59.87 points to 10,561.74, the FBMT 100 Index shaved off 56.99 points to 10,314.16, the FBM Emas Shariah Index fell 83.78 points to 10,669.3, the FBM 70 erased 150.01 points to 12,552.1 and the FBM ACE slid 55.11 points to 4,831.63.

Sector-wise, the Financial Services Index gave up 37.54 points for 16,649.61, the Energy Index shed 6.05 points to 646.64, the Industrial Products and Services Index eased 0.92 of-a-point to 180.95, while the Plantation Index rose 21.63 points to 7,123.87.

The Main Market volume declined to 1.48 billion shares worth RM1.49 billion from 1.77 billion shares worth RM1.06 billion on Tuesday.

Warrants turnover dipped to 322.59 million units valued at RM47.53 million versus 371.97 million units valued at RM62.28 million on Tuesday.

The ACE Market volume dwindled to 365.79 million shares worth RM130.92 million from 386.04 million shares worth RM136.99 million previously.

Consumer products and services counters accounted for 324.15 million shares traded on the Main Market, industrial products and services (391.19 million), construction (35.72 million), technology (165.89 million), SPAC (nil), financial services (51.37 million), property (142.00 million), plantation (29.71 million), REITs (4.59 million), closed/fund (nil), energy (91.35 million), healthcare (178.03 million), telecommunications and media (28.95 million), transportation and logistics (20.69 million), and utilities (12.47 million).

Source: The Edge