Bursa slides on mild profit-taking

KUALA LUMPUR: Bursa Malaysia slipped into the red after in the early trading session as it failed to hold on to the 1,500 psychological level amid ongoing uncertainty over the economic outlook.

At 12.30pm, the benchmark FBM KLCI was down 4.l4 points to 1,496.19. There were 433 gainers compared with 290 decliners. Trading volume was 1.47 billion shares valued at RM823.73mil.

The index however remained in a consolidation channel as it awaits a pick up in trading activity following the long Lunar New Year holiday.

TA Securities Research noted that the market was expected to succumb to profit-taking pressures given the daily and weekly slow-stochastic indicators were in highly overbought territory.

It aaded however, that the pullback would likely be shallow given the trend momentum indicators remains positive.

"Sentiment-wise, given the anticipated return of market players from the long Chinese New Year holiday break, trading momentum should pick up pace significantly, lending support to further upward bias," it said in its daily market commentary.

It added that recovery hopes are pinned to China's recent reopening of borders and its huge economy following the unwinding of its zero-Covid strategy.

For the time being, stock prices retreated from gains made in the past week. Maxis shaved 12 sen to RM3.98, MISC lost 19 sen to RM7.20 and IHH Healthcare dropped 10 sen to RM5.87.

Banks continued to show weakness on economic fears with Public Bank losing one sen to RM4.28 and Hong Leong Bank sliding eight sen to RM20.74.

QL Resources fell 12 sen to RM5.85, F&N lost 12 sen to RM24.16 and Allianz dropped 20 sen to RM13.86.

Stocks seeing bullish momentum included Heineken Malaysia up 80 sen to RM27.72, Hextar Technologies up 36 sen to RM24.06, MPI rising 28 sne to RM33.72 and Carlsberg adding 22 sen to RM23.36.

Of actives, Sapura Energy rose 0.5 sen to 5.5 sen, Cypark jumped 12.5 sen to 81.5 sen and DNeX added two sen to 62.5 sen.

Regionally, markets have continued to push higher in anticipation of an improved economic environment as China restarts business and the US showed signs of tapering inflation.

Japan's Nikei rose 0.45% to 27,415 and South Korea's Kospi gained 1.3% to 2,426 and Australia's ASX200 was down 0.1% o 7,480.

China's markets will remain closed for its Lunar New Year Holiday until Jan 29.