Market Daily Report: Bursa snaps four-day losing streak to end higher

KUALA LUMPUR (July 10): Bursa Malaysia snapped a four-day losing streak to close higher on Monday (July 10), supported by continuous buying momentum for heavyweights, amid mixed sentiments in regional markets.

At 5pm, the FBM KLCI had gained 5.39 points, or 0.39%, to 1,383.06, from 1,377.67 at last Friday’s close.

The key index opened 0.11 of a point lower at its intraday low of 1,377.56 on Monday morning, and moved to its highest level of 1,386.94 in the early morning session. 

The broader market turned positive, as gainers surpassed losers 405 to 377, while 454 counters were unchanged, 1,023 untraded, and 26 others suspended.

Turnover increased to 2.24 billion units worth RM1.51 billion, versus 1.97 billion units worth RM1.41 billion last Friday.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the KLCI ended higher as bargain-hunting emerged, particularly for telecommunications and commodity related counters.

“In addition, the improving geopolitical relations between the US and China have given some boost to investor sentiment after US Treasury Secretary Janet Yellen concluded her visit to Beijing, and said that the talks were ‘direct’ and ‘productive’, putting bilateral ties on ‘surer footing’,” he told Bernama on Monday.

On the other hand, he said investors are expected to remain cautious ahead of key inflation reports this week, including the US consumer price index report due Wednesday and the producer price index on Thursday.

“Hence, we reiterate our recommendation to accumulate blue chips, such as banks, telcos and commodity related stocks, for better countermeasure strategy.

“Barring unforeseen circumstances, we anticipate the KLCI to trend within the range of 1,380-1,395 for the week, with immediate resistance at 1,400, and support at 1,373,” he said.

Among the heavyweights, Malayan Banking Bhd (Maybank) was flat at RM8.67, Public Bank Bhd increased one sen to RM3.86, CIMB Group Holdings Bhd at RM5.19 and IHH Healthcare Bhd at RM5.82 had gained three sen each, while Tenaga Nasional Bhd slid two sen to RM9.03.

Of the actives, newly listed SkyWorld Development Bhd shed six sen to 74 sen, RGB International Bhd fell 3.5 sen to 34.5 sen, Sarawak Consolidated Industries Bhd eased half sen to 46 sen, while MyEG Services Bhd improved four sen to 75.5 sen.

On the index board, the FBM Emas Index rose 32.17 points to 10,198.65, the FBMT 100 Index improved 32.38 points to 9,892.70, the FBM Emas Shariah Index was 46.02 points better at 10,477.20, the FBM 70 Index increased 17.94 points to 13,463.63, while the FBM ACE Index edged up 18.57 points to 5,158.44.

Sector-wise, the Financial Services Index added 24.86 points to 15,402.35, the Industrial Products and Services Index earned 0.63 of a point to 158.88, the Energy Index perked 14.24 points to 806.44, and the Plantation Index climbed 24.77 points to 6,827.70.

The Main Market volume strengthened to 1.61 billion units valued at RM1.31 billion, from 1.40 billion units valued at RM1.21 billion last Friday.

Warrant turnover rose to 240.71 million units worth RM36.50 million, against 209.55 million units worth RM32.95 million. 

The ACE Market volume widened to 381.81 million shares valued at RM159.22 million, from 364.04 million shares valued at RM161.90 million previously.

Consumer products and services counters accounted for 341.48 million shares traded on the Main Market, followed by industrial products and services (334.13 million), construction (86.28 million), technology (165.89 million), special purpose acquisition companies (nil), financial services (62.14 million), property (367.30 million), plantation (26.91 million), real estate investment trusts (7.02 million), closed/funds (55,800), energy (107.35 million), healthcare (35.97 million), telecommunications and media (38.33 million), transportation and logistics (15.56 million), and utilities (23.60 million).

Source: The Edge