Bursa opens a fraction lower as global inflation fears mount

  • Markets
  • Monday, 27 Feb 2023

KUALA LUMPUR: Taking its cue from Wall Street's performance last Friday, Bursa Malaysia started the week on a weak footing as growing inflation fears once again sapped sentiment in global equities.

At the opening bell, the FBM KLCI was 0.76 points lower at 1,456.04.

However, the downside on the local market is expected to be limited following the tabling of Budget 2023 as investors look for opportunities in sectors that could benefit from the announced allocations.

According to Malacca Securities Research, these sectors could include the consumer sector as the revised Budget addresses the high cost of living, as well as the renewable energy sector, which was also in focus.

From a technical standpoint, the research firm said the outlook remained weak.

"Technical indicators remained negative as the MACD Histogram extended a negative bar, while the RSI hovered below the 50 level.

"Investors may monitor next support at 1,450, followed by 1,430 and the resistance at 1,500-1,510," it said in a report.

In early trading, stocks seeing selling pressure action included Ajinomoto down RM1.10 to RM14.10, Dutch Lady falling 70 sen to RM29.40 and Carlsberg dropping 32 sen to RM22.66.

PETRONAS Dagangan fell 12 sen to Rm22.18 and PETRONAS Chemicals shed 12 sen to RM7.08.

Press Metal dipped 11 sen to RM5.09.

Gainers included Heineken up 52 sen to RM28, MPI adding 20 sen to RM29.70, PIE Industrial up 18 sen to RM3.45 and SMI gaining 14 sen to RM1.03.

Top actives included Zentech flat at 2.5 sen, Borneo Oil unchanged at two sen and Jade Marvel up two sen to 31 sen.

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