Market Daily Report: Bursa ends on softer note despite status quo on OPR

KUALA LUMPUR (July 6): Bursa Malaysia closed on a softer note despite Bank Negara Malaysia’s decision to retain the overnight policy rate (OPR) at 3%.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 3.95 points, or 0.28%, to 1,385.95 from 1,389.90 at Wednesday’s close.

The key index opened 0.19 of a point lower at 1,389.71 on Thursday morning and moved between 1,381.86 and 1,389.71 throughout the session.

The broader market was also negative as losers trounced gainers 514 to 339, while 398 counters were unchanged, 995 untraded and 18 others suspended.

Turnover decreased slightly to 2.45 billion units worth RM1.65 billion versus 2.54 billion units worth RM1.52 billion on Wednesday.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI closed marginally lower in tandem with the negative performance in regional markets.

He said key regional markets trended lower following a negative cue from Wall Street overnight as investor sentiment has been dampened by the release of minutes from the US Federal Reserve's (Fed) most recent policy meeting on Wednesday.

The Fed revealed that certain central bank officials expressed the desire to increase rates in mid-July.

“As US Treasury Secretary Janet Yellen embarks on several days of meetings in Beijing, investors are closely monitoring any developments regarding the ongoing tensions between the US and China,” he told Bernama.

Back home, Thong reckons Thursday's selldown provides bargain-hunting opportunity for investors, hence he expects the FBM KLCI to stage a rebound and trend within the range of 1,380-1,395 towards the weekend.  

“Technically speaking, we see the resistance at 1,400 with support at 1,373,” he added.

Among the heavyweights, Malayan Banking Bhd added three sen to RM8.73, CIMB Group Holdings Bhd rose three sen to RM5.21, Public Bank Bhd lost two sen to RM3.88, Tenaga Nasional Bhd inched down one sen to RM9.07, and IHH Healthcare Bhd erased three sen to RM5.80.

Of the actives, Widad Group Bhd gained half sen to 42 sen, BTM Resources Bhd increased half sen to 10 sen, and Jade Marvel Group Bhd perked up 1.5 sen to 22.5 sen, but Sarawak Consolidated Industries Bhd went down one sen to 46.5 sen and MyEG Services Bhd declined one sen to 73 sen.

On the index board, the FBM Emas Index dipped 30.29 points to 10,221.23, the FBMT 100 Index fell 28.76 points to 9,916.63, the FBM Emas Shariah Index was 54.99 points lower at 10,476.34, the FBM ACE Index narrowed 28.82 points to 5,136.55, and the FBM 70 Index lost 41.29 points to 13,510.18.

Sector-wise, the Financial Services Index edged up 9.67 points to 15,474.20, the Industrial Products and Services Index shaved 1.11 points to 157.86, the Energy Index decreased 6.01 points to 792.16, and the Plantation Index shed 54.80 points to 6,861.37.

The Main Market volume slipped to 1.63 billion units valued at RM1.35 billion from 1.79 billion units valued at RM1.28 billion on Wednesday.

Warrants turnover increased to 292.22 million units worth RM45.05 million against 258.97 million units worth RM43.42 million previously.

The ACE Market’s volume widened to 532.40 million shares valued at RM256.35 million from 439.84 million shares valued at RM203.20 million previously.

Consumer products and services counters accounted for 346.28 million shares traded on the Main Market, industrial products and services (516.21 million), construction (52.75 million), technology (130.31 million), SPAC (nil), financial services (88.92 million), property (209.79 million), plantation (24.57 million), REITs (4.52 million), closed/fund (26,600), energy (67.42 million), healthcare (65.17 million), telecommunications and media (57.68 million), transportation and logistics (29.03 million), and utilities (35.57 million).

Source: The Edge