Bursa Malaysia remains in negative territory at midday

BURSA Malaysia remained in the negative territory at midday in tandem with regional peers, as investors went into risk-off mode following the selldown on Wall Street, an analyst said.

At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) contracted by 12.5 points to 1,475.34 from Tuesday’s close of 1,487.84.

The benchmark index opened 12.6 points lower at 1,475.24.

On the broader market, decliners beat advancers 632 to 168, while 292 counters were unchanged, 1,259 untraded and 13 others suspended.

Turnover stood at 1.46 billion units worth RM773.61 million.

ActivTrades trader Anderson Alves said Asian equities were on the back foot as Wall Street was triggered by the US Consumer Price Index, which rose to 6.3% in August 2022 from 5.9% in July.

He said traders are now pricing in a more aggressive rate cycle from the US Federal Reserve, with an 80% chance of a 75 basis points (bps) hike, while a growing number are expecting a 100bps hike at next week’s Federal Open Market Committee meeting.

Alves said the terminal rate could be higher than the 3.75% markets have been pricing, with probabilities now shifting towards 4%-4.5% next year.

Back home, Bursa heavyweights Malayan Banking Bhd fell two sen to RM8.90, Public Bank Bhd eased one sen to RM4.51 and CIMB Group Holdings Bhd shrank six sen to RM5.39, while Petronas Chemicals Group Bhd added two sen to RM8.73 and IHH Healthcare Bhd improved three sen to RM6.23.

Of the actives, Velesto Energy Bhd, SNS Network Technology Bhd and Aimflex Bhd were down by half-a-sen each to 11 sen, 28.5 sen and 15 sen, respectively, SFP Tech Holdings Bhd trimmed 12 sen to RM1.52, while Metronic Global Bhd was flat at three sen.

On the index board, the FBM Emas Index declined 94.27 points to 10,503.99, the FBM T100 Index slid 90.8 points to 10,249.42, the FBM Emas Shariah Index weakened 120.12 points to 10,600.36, the FBM 70 went down 128.33 points to 12,686.1 and the FBM ACE slipped 89.32 points to 4,811.4.

Sector-wise, the Energy Index shed 7.48 points to 720.19, the Plantation Index dropped 58.49 points to 6,940.41, the Industrial Products and Services Index eased 1.24 points to 182.21 and the Financial Services Index gave up 88.57 points to 16,578.42. — Bernama / pic by Muhd Amin Naharul