Market Daily Report: Banking Stocks Drag Bursa Malaysia Below 1,600 Level

KUALA LUMPUR, Nov 28 (Bernama) -- The fall in shares of banking heavyweights weighed heavily on Bursa Malaysia, causing the index to slip below the crucial 1,600 mark.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 6.76 points, or 0.42 per cent, to settle at its intraday low of 1,597.49 from Wednesday’s close of 1,604.25.

The index opened 2.07 points higher at 1,606.32 and peaked at 1,608.01 in the early session before declining for most of the day until closing.

Losers outnumbered gainers 604 to 415 while 486 counters were unchanged, 964 untraded and 89 suspended.

Turnover declined to 2.79 billion units valued at RM2.90 billion versus 3.19 billion units valued at RM2.96 billion yesterday.

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan attributed today's performance to broader weak market sentiment as Wall Street retreated overnight, which marked the first decline in over a week, as investors adjusted positions following recent gains.  

US markets will be closed on Thursday for the Thanksgiving holiday and will reopen on Friday for a shortened trading session, providing limited direction for the equities market.

He pointed out that the second estimate for third-quarter (3Q) gross domestic product remained unchanged at 2.8 per cent, driven by resilient consumer spending and strong export activity, highlighting the continued strength of the US economy.

“Inflation metrics also pointed to stabilisation, with the core Personal Consumption Expenditures (PCE) Index rising 0.3 per cent in October and 2.8 per cent year-on-year, aligning with expectations and the Federal Reserve’s (Fed) 2.0 per cent target range.  

“With that, market participants are now pricing in a 66 per cent probability of a 25-basis-point rate cut at the Fed's December 18 meeting,” he said.

At home, he pointed out that interest was on plantation and telecommunication stocks, rebounding from prior sell-offs triggered by financial results that fell short of expectations.

On a sectoral basis, the Bursa Malaysia Construction Index was a standout performer, buoyed by earnings reports over the last two days that met market expectations.

Additionally, an acceleration in construction activities signals improving fundamentals, positioning the sector as a potential outperformer in the near term.  

Heavyweight CIMB led the decliners, losing 12 sen to RM8.25, Public Bank eased three sen to RM4.41, Hong Leong Bank was 24 sen weaker at RM20.56, and RHB Bank slid 11 sen to RM6.67.

Maxis, in which business tycoon Ananda Krishnan, who passed away today, owns a controlling stake, was five sen lower at RM3.51.

KLK continued to be among the top gainers, surging 50 sen to RM21, followed by Axiata which put on three sen to RM2.34.  

Among the active stocks, Sapura Energy rose one sen to 4.0 sen, Genetec Technology added two sen to RM1.19, Nationgate fell 17 sen to RM2.18, Notion Vtec shed one sen to RM1.19, and Microlink Solutions slipped 1.5 sen to 10 sen.

On the index board, the FBM Emas Index dropped 45.74 points to 12,145.23, the FBMT 100 Index sank 46.26 points to 11,841.29, and the FBM Emas Shariah Index declined 24.85 points to 12,087.57.

The FBM 70 Index lost 55.71 points to 17,863.20 and the FBM ACE Index gave up 29.60 points to 5,149.14.

Sector-wise, the Financial Services Index fell 129.51 points to 19,107.33, the Energy Index decreased 2.81 points to 815.88, and the Industrial Products and Services Index shed 1.09 points to 170.60.

The Plantation Index gained 7.66 points to 7,489.20.

The Main Market volume remained at 1.70 billion units worth RM2.70 billion against Wednesday’s value of RM2.69 billion.

Warrants turnover dwindled to 745.57 million units valued at RM74.56 million from 1.06 billion units valued at RM108.26 million previously.  

The ACE Market volume slipped to 345.58 million units worth RM123.11 million compared with 427.73 million units worth RM164.19 million yesterday.

Consumer products and services counters accounted for 201.07 million shares traded on the Main Market, industrial products and services (329.22 million), construction (145.68 million), technology (330.15 million), SPAC (nil), financial services (119.07 million), property (128.90 million), plantation (46.77 million), REITs (5.9 million), closed/fund (8,100), energy (195.94 million), healthcare (55.08 million), telecommunications and media (43.30 million), transportation and logistics (40.58 million), utilities (54.35 million), and business trusts (191,800).

Source: Bernama