PETALING JAYA: The FBM KLCI struggled for direction yesterday, swinging between gains and losses before ending flat, while the ringgit weakened against both the US and Singapore dollars.
The benchmark index finished flat, slipping a negligible 0.06 of a point to 1,714.34, after trading between an intraday high of 1,718.52 and a low of 1,710.36.
In the broader market, gainers and decliners were nearly balanced, with 551 gainers against 531 decliners, while 591 counters remained unchanged.
Turnover came to 3.67 billion shares valued at RM3.5bil.
Dealers said buying interest was interspersed with profit-taking, keeping the benchmark volatile as investors remained selective.
They noted that gains in selected heavyweights provided support to the index, although intermittent selling capped the upside and left the market largely directionless.
“The near-term outlook for the Malaysian stock market is likely to remain cautious and range-bound, with volatility elevated amid a challenging global backdrop.
“Global risk sentiment remains the key headwind.
“Geopolitical tensions, elevated oil prices, concerns over inflation and uncertainty surrounding US interest rates could keep investors defensive and limit upside in the FBM KLCI,” said a dealer.
However, he said Malaysia’s relatively resilient domestic economy should provide some support.
“Strong domestic demand, continued investment activity and sustained interest in sectors such as technology and data centres could help cushion the market from external pressures.
“As a result, investors are likely to remain selective, favouring companies with strong earnings visibility and exposure to domestic growth themes.
“Banks and other economically sensitive sectors, meanwhile, could remain more vulnerable to shifts in global yields and risk sentiment.”
Among the gainers, Malaysian Pacific Industries
Bhd jumped RM1.14 to RM40.96, Petronas Dagangan Bhd added 38 sen to RM20.30, Telekom Malaysia Bhd gained 29 sen to RM8.18 and UWC Bhd climbed 26 sen to RM6.78.
In contrast, Nestle (M) Bhd slid RM1.16 to RM93, Fraser & Neave Holdings Bhd eased 44 sen to RM24.10, United Plantations Bhd fell 30 sen to RM33 and Hong Leong Industries Bhd declined 16 sen to RM16.90.
On the foreign-exchange front, the ringgit fell 0.12% against the US dollar to 4.0672, bringing its year-to-date gain to 0.8%.
The local currency also fell to a 10-month low against the Singapore dollar, weighed down by foreign stock outflows, while the Singapore dollar continued to draw support from the island state’s hawkish monetary policy stance, Bloomberg reported.
The ringgit fell 0.15% to 3.2139 against the Singapore dollar, its lowest level since November.
In terms of fund flows, foreign funds were net buyers on Bursa Malaysia, acquiring RM89mil worth of equities.
Meanwhile, local institutions and retail investors emerged as net sellers on Tuesday, offloading RM63mil and RM26mil worth of equities, respectively.
Reuters reported that Brent crude was trading near US$100 a barrel yesterday for the first time since July, as escalating attacks across the Middle East raised concerns over supply disruptions.
Brent crude futures rose US$2.16, or 2.2%, to 100.08 a barrel while the West Texas Intermediate crude was up 1.8% at US$94.74 per barrel.
Around the region, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.38%.
Japan’s Nikkei 225 fell 0.19% and Hong Kong’s Hang Seng Index declined 0.17%, while South Korea’s Kospi gained 1.4% and China’s CSI 300 Index added 0.3%.
