KUALA LUMPUR: Bargain hunters returned to Bursa Malaysia at midday on Wednesday, picking up beaten-down banking, utilities, construction and energy heavyweights following Tuesday’s selloff.
At the lunch break, the FBM KLCI rose 10.18 points, or 0.62%, to 1,654.14, as buying interest returned to selected heavyweights across the utilities, banking, construction and energy sectors. The index hit an intramorning high of 1,656.87.
The broader market remained under pressure, with losers nearly doubling gainers at 603 to 350, while 521 counters were unchanged. Turnover reached 1.93 billion shares valued at RM1.49bil.
Apex Securities said sentiment remains fragile, with the US 10-year Treasury yield at its highest since 2007 and consumer confidence at a 12-year low, although Brent crude slipping below US$105 a barrel amid ongoing US-Iran talks offered some relief.
It said investors will turn to US PCE inflation data tonight and September non-farm payrolls on Friday for clues on the Federal Reserve’s next move.
“After Tuesday’s 1.56% slide to the lower boundary of its descending trend channel, we expect the FBM KLCI to trade cautiously with 1,640 as key support, while any easing in US yields could spark bargain hunting in beaten-down heavyweights,” the brokerage said.
Meanwhile, Hong Leong Investment Bank Research said the FBM KLCI could remain in risk-off consolidation amid the US-Iran impasse, hawkish Federal Reserve signals, elevated oil prices and bond yields, and persistent foreign outflows.
It said sentiment could also be weighed down by expectations of slower domestic economic growth in 2027, potential corporate earnings disappointments and household affordability concerns.
The research house added that the upcoming Melaka polls could heighten political uncertainty and provide indications of voter sentiment and coalition dynamics.
Hengyuan Refining
Co was the top loser on Bursa Malaysia, tumbling 57 sen, or 13.13%, to RM3.77, with 14.69 million shares traded.
Earlier, Bursa Malaysia suspended intraday short selling (IDSS) of Hengyuan shares for the rest of the day after the stock fell more than 15% from its reference price.
Other decliners included Malaysian Pacific Industries, which slid 44 sen to RM40.36, Eurospan, which fell 25 sen to RM2.99, Kuala Lumpur Kepong, down 22 sen to RM22.28, and MI Technovation, which lost 17 sen to RM5.22.
Among the gainers, Nestle rose RM1.12 to RM90.12, Tenaga Nasional gained 32 sen to RM13.04, United Plantations added 28 sen to RM31.60, while Gamuda and PETRONAS Gas advanced 20 sen each to RM5.18 and RM17.38, respectively.
