PETALING JAYA: Bursa Malaysia trimmed earlier losses but ended lower yesterday, as a broad regional selloff outweighed selective buying in heavyweight stocks.
At closing, the benchmark FBM KLCI fell 11.02 points, or 0.63%, to 1,737.15 after hitting an intraday low of 1,733.38.
A dealer said the near-term outlook for the FBM KLCI is likely to remain range-bound with a slight positive bias, as investors shift their focus from macroeconomic concerns to the upcoming second-quarter earnings season.
“The upcoming reporting season will be crucial in determining whether the FBM KLCI can resume its upward momentum.
“Companies with strong earnings and upbeat guidance are likely to attract buying interest, while any signs of margin pressure or weaker demand could trigger profit-taking after the market’s gains this year,” he told StarBiz.
An analyst said sectors expected to remain in focus include banks, on expectations of healthy loan growth and stable asset quality.
“The construction and utilities sectors are also expected to be in focus, underpinned by infrastructure and data centre-related projects.
Meanwhile, for the property segment, investors will be watching sales performance and new launches.
“Export-oriented technology stocks could also benefit if demand for artificial intelligence-related products remains robust, although currency movements and global trade uncertainties remain key risks.”
Meanwhile, winners and losers on the local bourse yesterday were closely balanced, with 566 gainers against 577 losers and 574 that were flat. About 3.24 billion shares, valued at RM2.91bil, changed hands.
Among the decliners, Heineken Malaysia Bhd
tumbled RM2 to RM17.10, Nestle (M) Bhd shed RM1.20 to RM101.30, Carlsberg Brewery Malaysia Bhd lost 94 sen to RM14.94, and Hong Leong Industries Bhd fell 34 sen to RM17.68.
Malaysian Resources Corp Bhd, which secured the RM3.028bil Penang LRT railway systems contract with Theta Edge Bhd, rose three sen, or 9.68%, to close at 34 sen, while Theta Edge gained 16 sen, or 29.09%, to 71 sen.
Other gainers included Malaysian Pacific Industries Bhd, which jumped 72 sen to RM47.66, UWC Bhd, up 31 sen to RM6.79, IJM Corp Bhd, which gained 17 sen to RM2.66, and Ayer Holdings Bhd, which climbed 15 sen to RM7.50.
On the foreign exchange market, the ringgit strengthened 0.12% against the US dollar to 4.0892 and edged up 0.11% versus the Singapore dollar to 3.1898.
According to Bursa Malaysia data, foreign investors and local institutions were net buyers, purchasing RM54mil and RM115mil worth of local equities, respectively, while retailers were net sellers of RM169mil.
Meanwhile, Reuters reported that oil prices rose on concerns over the outcome of Iran-Oman talks and reported attacks on Saudi tankers in the Red Sea and Gulf of Aden, which renewed supply fears.
Brent crude advanced eight cents to US$79.53 a barrel while US West Texas Intermediate crude was at US$75.10 per barrel, down 12 cents.
On the external front, MSCI’s Asia ex-Japan index fell 1.86%, with regional markets ending mostly lower.
Japan’s Nikkei 225 dropped 0.93% to 65,683.26, while South Korea’s Kospi tumbled 4.58% to 6,296.38. Hong Kong’s Hang Seng fell 1.5% to 25,530.28, while China’s CSI300 eased 0.15% to 4,651.31 and the Shanghai Composite edged up 0.57% to 3,900.35.
