Market Daily Report: Bursa retreats on profit-taking

KUALA LUMPUR (Aug 1): Bursa Malaysia retreated from Monday's gains to end lower on Tuesday (Aug 1), due to profit-taking activities amid mixed regional market performance, said a dealer.

At 5pm, the FBM KLCI had fallen 8.19 points, or 0.56%, to 1,451.24, from 1,459.43 at Monday’s close, after opening 0.53 of a point weaker at 1,458.90.

The key index fluctuated between 1,449.02 and 1,462.56 throughout the day.

Overall market breadth was negative, with decliners trouncing advancers 599 to 343, while 417 counters were unchanged, 906 untraded, and 17 others suspended.

Turnover stood at 3.83 billion units worth RM1.75 billion.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the key regional indices were mixed, but the Japanese market saw strong gains in line with market optimism sparked by a Wall Street rally overnight, although concerns about inflation and regional growth continued to linger.

He added that China and Hong Kong ended lower on profit-taking in property stocks, but the technology sector registered strong gains.

Meanwhile, Thong expects the trend in local equities to remain positive, as a result of the improving regional sentiment and strong support from foreign funds.

“Despite today's (Tuesday) profit-taking activities, we consider it a healthy sign, as it enables the market to absorb the recent uptrend.

“Hence, we anticipate the KLCI to move higher within the 1,450-1,470 range for the rest of the week. On a technical point of view, we spot immediate resistance at 1,460 and support at 1,440,” he told Bernama.

Heavyweights Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd fell three sen each. Maybank closed at RM8.99, while CIMB settled at RM5.52 a share. Petronas Chemicals Group Bhd slid 10 sen to RM6.85, while Public Bank Bhd at RM4.12 and Tenaga Nasional Bhd at RM9.55 had both slipped five sen.

Of the actives, Sapura Energy Bhd at four sen and AT Systematization Bhd at 1.5 sen were both half a sen higher. Hong Seng Consolidated Bhd shed one sen to 5.5 sen, while KNM Group Bhd at 9.5 sen and Pesona Metro Holdings Bhd at 17.5 sen were both flat.

On the index board, the FBM Emas Index declined 44.71 points to 10,658.57, the FBMT 100 Index was 40.43 points weaker at 10,352.45, the FBM Emas Shariah Index edged down 29.93 points to 10,922.79, the FBM ACE Index slid 22.72 points to 5,307.41, while the FBM 70 Index increased 21.62 points to 13,971.21.

Sector-wise, the Financial Services Index slid 81.59 points to 16,192.46, the Industrial Products and Services Index eased 1.14 points to 167.57, the Plantation Index trimmed 35.91 points to 7,144.52, and the Energy Index added 2.96 points to 833.11.

The Main Market volume expanded to 2.65 billion units valued at RM1.47 billion, from 2.32 billion units valued at RM2.24 billion on Monday.

Warrant turnover dwindled to 330.98 million units worth RM55.70 million, versus 363.95 million units worth RM58.30 million previously.

The ACE Market volume surged to 846.57 million shares valued at RM231.54 million, compared with 607.69 million shares valued at RM195.49 million a day earlier.

Consumer products and services counters accounted for 314.62 million shares traded on the Main Market, along with industrial products and services (356.75 million), construction (238.16 million), technology (293.44 million), special purpose acquisition companies (nil), financial services (60.24 million), property (299.78 million), plantation (26.43 million), real estate investment trusts (16.40 million), closed/funds (21,300), energy (897.42 million), healthcare (61.64 million), telecommunications and media (30.44 million), transportation and logistics (27.75 million), and utilities (30.98 million).

Source: The Edge