Bursa opens lower on risk averse mode

The local bourse may be headed for a widespread selloff following the Wall Street’s sharp drop

BURSA Malaysia opened lower today on a risk-averse mode, taking its cue from Wall Street’s sharp drop last Friday, a dealer said.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 16.29 points to 1,484.0 from last Friday’s closing of 1,500.29. 

The benchmark index opened 13.77 points lower at 1,486.52.

On the broader market, losers surpassed gainers 494 to 47, while 152 counters were unchanged, 1,666 untraded and 81 others suspended.

Turnover stood at 200.45 million units worth RM105.12 million.

In a note, Malacca Securities Sdn Bhd said the local bourse may be headed for a widespread selloff, following the sharp decline on Wall Street overnight after the US Federal Reserve’s (Fed) chair Jerome Powell’s hawkish remark last Friday.

“We believe the US Fed’s interest rate decision going forward will continue to fuel market volatility. On the local front, investors may watch for Malaysia’s inflation rate data at noon,” it said.

On commodities, the brokerage firm noted that the crude oil price climbed above US$100 (RM449), while the crude palm oil traded at above RM4,150.

As for sectors in focus, it said investors might avoid technology stocks amid the resurgence in concerns over implications of higher interest rates on the global markets.

However, they may favour the defensive sectors such as consumer stocks, real estate investment trusts, building materials, utilities and banking sectors to prepare for a volatile period.

Meanwhile, Bursa heavyweights Malayan Banking Bhd and Public Bank Bhd shed three sen each to RM8.88 and RM4.60, respectively, Petronas Chemicals Group Bhd slid one sen to RM8.68, CIMB Group Holdings Bhd fell 11 sen to RM5.35 and IHH Healthcare Bhd slipped two sen to RM6.35.

Of the actives, Dagang NeXchange Bhd was three sen lower at 84.5 sen, Serba Dinamik Holdings Bhd’s warrant eased half-a-sen to 1.5 sen and Agmo Holdings Bhd declined two sen to 87.5 sen, while Borneo Oil Bhd and VinVest Capital Holdings Bhd were flat at 2.5 sen and 19.5 sen, respectively.

On the index board, the FBM Emas Index dropped 132.52 points to 10,516.32, the FBM T100 Index lost 123.74 points to 10,269.62, the FBM 70 tumbled 195.69 points to 12,550.46, the FBM ACE went down 123.37 points to 4,833.0 and the FBM Emas Shariah Index dipped 161.04 points to 10,598.93. 

Sector-wise, the Plantation Index was 65.90 points lower at 6,988.44, the Industrial Products and Services Index shed 2.57 points to 179.61, the Financial Services Index decreased 117.62 points to 16,606.07 and the Energy Index went down by 14.24 points to 713.20. — Bernama / pic TMR