Market Daily Report: Bursa ends slightly lower, broader market firmer

KUALA LUMPUR (Aug 28): Bursa Malaysia’s key index ended slightly lower while the broader market was firmer on Monday (Aug 28) on lack of buying interest as investors shifted their focus on small- and mid-cap stocks, said a trader. 

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said, however, Malaysian equities ended higher with buying interests mainly on property and construction stocks.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.35 of a point to 1,444.06 from 1,444.41 at last Friday’s (Aug 25) close.

The barometer index opened 0.74 of a point lower at 1,443.67 and moved in a tighter range between 1,441.78 and 1,445.31 throughout the day.  

However, the broader market was positive with advancers outpacing decliners 573 to 477, while 387 counters were unchanged, 955 untraded and 23 others suspended.

Turnover increased to 4.46 billion units worth RM2.84 billion against Friday’s 3.72 billion units worth RM2.66 billion. 

Thong said the key regional indices trended higher as China introduced fresh measures to prop up its faltering markets. Beijing additionally revealed a relaxation of mortgage regulations to strengthen the real estate sector, a move that bolstered real estate equities in China.

“On the domestic front, the benchmark index remained well support above the 1,440 level, thanks to higher market participation.

“With buying interests having shifted to smaller-cap stocks, we believe the FBM KLCI will likely stay in a consolidation mode bias towards positive for the time being as foreign buying and bargain-hunting activities may emerge as well,” he said. 

Hence, Thong anticipates the KLCI to trend within the 1,440-1,460 range for the week. On a technical point of view, the immediate resistance is unchanged at 1,460 and support is at 1,440.

Meanwhile, SPI Asset Management managing partner Stephen Innes said the local market was quiet on Monday as traders booked off this week to spend time with family during the school holidays, while China's economic woes continue to cast a shadow over the market. 

Among the heavyweights, Petronas Chemicals Group Bhd added 10 sen to RM7, Maybank Bhd eased two sen to RM9, CIMB Group Holdings Bhd shed one sen to RM5.60, Tenaga Nasional Bhd slid seven sen RM9.90, while Public Bank Bhd was flat at RM4.08. 

Of the actives, Ekovest Bhd rose four sen to 49.5 sen, Iskandar Waterfront City Iskandar Bhd gained 6.5 sen to 66 sen, UEM Sunrise Bhd was 4.5 sen firmer at 71.5 sen, Malaysian Resources Corp Bhd  perked up two sen to 44 sen, while RGB International Bhd went down five sen to 31 sen. 

On the index board, the FBM Emas Index rose 19.25 points to 10,681.52, the FBMT100 Index increased 12.9 points to 10,356.11, the FBM Emas Shariah Index put on 29.07 points to 10,918.04, the FBM 70 Index advanced 82.56 points to 14,208.87, and the FBM ACE Index went down 36.43 points to 5,238.47.

Sector-wise, the Financial Services Index inched up 0.8 of a point to 16,191.49, the Industrial Products and Services Index climbed 1.87 points to 170.9, and the Energy Index added 12.62 points to 836.77, while the Plantation Index shed by 9.75 points to 6,949.08.  

The Main Market volume swelled to 3.36 billion units worth RM2.57 billion from Friday's 2.54 billion units worth RM2.41 billion. 

Warrants turnover expanded to 465.56 million units worth RM69.95 million against 440.69 million units worth RM58.93 million previously.  

The ACE Market volume dwindled to 621.42 million shares worth RM205.02 million from 723.48 million shares worth RM198.39 million last Friday. 

Consumer products and services counters accounted for 589.19 million shares traded on the Main Market, industrial products and services (501.13 million); construction (398.14 million); technology (177.74 million); SPAC (nil); financial services (59.23 million); property (910.35 million); plantation (69.62 million); REITs (9.21 million), closed/fund (133,700); energy (386.24 million); healthcare (55 million); telecommunications and media (28.64 million); transportation and logistics (56.37 million); and utilities (123.28 million).

Source: The Edge