Market Daily Report: Bursa ends lower for second consecutive day

KUALA LUMPUR (Aug 2): Bursa Malaysia extended its decline for the second consecutive day on Wednesday (Aug 2) on persistent selling pressure mainly in telecommunications and commodity-related counters, in tandem with the downbeat regional markets.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 6.68 points, or 0.46%, to 1,444.56 from 1,451.24 at Tuesday’s (Aug 1) close. 

The barometer index opened 1.79 points weaker at 1,449.45 and fluctuated between 1,441.85 and 1,450.28 throughout the day.

The market breadth was also negative with decliners trouncing advancers 555 to 348, while 419 counters were unchanged, 943 untraded and 17 others suspended.

Turnover stood at 2.79 billion units worth RM1.88 billion.

Malacca Securities Sdn Bhd senior analyst Kenneth Leong said profit-taking activities from the previous week's rally remained unabated.

The market weakness was also dragged down by concerns over the US credit rating downgrade and the renewed tensions between the US and China.

“Looking ahead, we reckon that further pullback may continue as investors continue to digest the recent gains before fresh legs kick in for the recovery to resume,” he said.

Meanwhile, Leong said investors may also keep a close watch on several key economic data such as the Bank of England's interest rate decision as well as US non-manufacturing purchasing managers’ index and factory orders to be released on Thursday (Aug 3).

“Technically, we expect the 1,430 to serve as a key support level. Should the key index manage to stay afloat above the aforementioned level, upsides are located towards 1,460-1,480 levels.

“Meanwhile, should the 1,430 level gives way, the next support is at 1,400,” he added.

Heavyweights, Maybank Bhd lost four sen to RM8.95, CIMB Group Holdings Bhd fell five sen to RM5.47 and Petronas Chemicals Group Bhd decreased 10 sen to RM6.75. 

Public Bank Bhd added one sen to RM4.13 and Tenaga Nasional Bhd gained two sen to RM9.57.

Of the actives, UEM Sunrise Bhd increased 4.5 sen to 50.5 sen, both Widad Group Bhd and Velesto Energy Bhd improved half a sen to 43 sen and 23.5 sen, respectively, and YTL Power International Bhd was seven sen higher at RM1.45, while KNM fell half a sen to nine sen.

On the index board, the FBM Emas Index declined 46.92 points to 10,611.65, the FBMT 100 Index was 46.77 points weaker at 10,305.68, the FBM Emas Shariah Index edged down 50.33 points to 10,872.46, the FBM ACE Index slid 18.52 points to 5,288.89, and the FBM 70 Index fell 59.33 points to 13,911.88.

Sector-wise, the Financial Services Index slipped 69.07 points to 16,123.39, the Industrial Products and Services Index eased 1.80 points to 165.77, the Plantation Index trimmed 43.63 points to 7,100.89, and the Energy Index shed 0.64 of-a-point to 832.47.

The Main Market volume decreased to 1.81 billion units valued at RM1.61 billion from 2.65 billion units valued at RM1.47 billion on Tuesday.

Warrants turnover expanded to 451.29 million units worth RM76.58 million versus 330.98 million units worth RM55.70 million previously.

The ACE Market volume dwindled to 527.29 million shares valued at RM192.50 million compared to 846.57 million shares valued at RM231.54 million on Tuesday. 

Consumer products and services counters accounted for 288.14 million shares traded on the Main Market, industrial products and services (310.82 million); construction (110.8 million); technology (190.06 million); SPAC (nil); financial services (51.03 million); property (353.87 million); plantation (34.2 million); REITs (11.62 million), closed/fund (30,600); energy (239.10 million); healthcare (67.46 million); telecommunications and media (25.6 million); transportation and logistics (32.21 million); and utilities (99.73 million).

Source: The Edge