PETALING JAYA: Bursa Malaysia ended lower yesterday amid broad-based selling, as weaker global sentiment weighed on investor risk appetite.
At 5pm, the FBM KLCI slid 25.34 points, or 1.47%, to 1,700.54 points, compared with last Friday’s close of 1,725.88.
The benchmark index opened 1.61 points higher at 1,727.49 and fluctuated between 1,697.83 and 1,729.17 throughout the day.
An analyst said the near-term outlook for Bursa Malaysia is likely to remain cautious.
“I wouldn’t expect investors to immediately return to aggressive risk-taking.
“The market is likely to trade on headlines – particularly developments involving Iran, oil supply and the Strait of Hormuz – while US employment data and subsequent Federal Reserve (Fed) signals will be closely watched.”
However, he added that Malaysia “has some defensive cushions”.
“Malaysia’s relatively resilient domestic economy, steady corporate earnings and attractive valuations could provide some support to the market, while encouraging selective bargain hunting should valuations become more compelling.
“Investor sentiment is, therefore, likely to remain cautious rather than outright bearish, with market participants expected to favour fundamentally sound counters and defensive sectors while taking a more selective approach to risk.”
On the broader market, losers trounced gainers 956 to 349, while 443 counters were unchanged, 1,033 untraded and 24 suspended. Turnover improved to 5.52 billion units valued at RM4.42bil from 5.06 billion units valued at RM6.51bil last Friday.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said selling pressure was broad-based as investors turned cautious amid heightened external uncertainties.
“Regional markets were mostly lower as investors remained wary of the Fed’s interest rate outlook and escalating tensions in West Asia,” he told Bernama.
On the domestic front, Thong said the current weakness was largely driven by heightened global volatility and uncertainty rather than any deterioration in domestic fundamentals.
Among the heavyweights, Malayan Banking Bhd
fell 12 sen to RM10.56, Public Bank Bhd eased four sen to RM4.91, CIMB Group Holdings Bhd slipped 11 sen to RM7.85, Tenaga Nasional Bhd declined 38 sen to RM13.76, and IHH Healthcare Bhd erased 10 sen to RM8.15.
On the most active list, Zetrix AI Bhd fell three sen to 26.5 sen, Excel Force MSC Bhd rose 4.5 sen to 13.5 sen, HHRG Bhd gained 2.5 sen to 15.5 sen, while Land & General Bhd and Tanco Holdings both edged down half a sen to 18.5 sen and 18 sen, respectively.
Among the top gainers, Hengyuan Refining Co Bhd surged 58 sen to RM2.53, Dutch Lady Milk Industries Bhd garnered 40 sen to RM31.78, BLD Plantation Bhd added 24 sen to RM15, Sarawak Oil Palms Bhd increased 21 sen to RM5.56, and Hong Leong Bank Bhd advanced 20 sen to RM23.70.
Among the top losers, Malaysian Pacific Industries Bhd fell RM1.30 to RM40.26, Nestle (M) Bhd dipped 60 sen to RM99.50, Kelington Group Bhd dropped 36 sen to RM8.84, while RHB Bank Bhd and UWC Bhd lost 34 sen each to RM8.34 and RM6.56, respectively.
Separately, Bursa Malaysia issued a consultation paper yesterday to seek feedback on proposed amendments to facilitate Phase 2 of the dematerialisation of securities deposited with Bursa Malaysia Depository Sdn Bhd.
In a statement, the exchange operator said the proposed amendments involve the Rules of Bursa Malaysia Depository Sdn Bhd and consequential amendments to the Main Market and ACE Market Listing Requirements.
“Dematerialisation entails removing the requirement for the issuance and custodisation of physical jumbo certificates as evidence of title or ownership of deposited securities.
“The proposed amendments are intended to support more efficient and sustainable depository processes by reducing reliance on paper documentation and streamlining key steps in the deposit of securities process,” it said.
Bursa Malaysia said the public consultation seeks feedback on the proposed amendments, which include the simplification of the securities deposit process, and enhancements to the role of issuers and share registrars in such a process. — Agencies
