Bursa Malaysia opens lower, tracking Wall Street performance

BURSA Malaysia opened lower today, tracking Wall Street’s slump overnight as concerns over the United States (US) banking sector returned ahead of the US Federal Reserve’s (Fed) rate decision later today. 

At 9.11 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 3.79 points to 1,422.32 from Tuesday’s close of 1,426.11.

The index opened 2.21 points easier at 1,423.90. 

The market breadth was negative with losers leading gainers 215 to 109, while 260 counters were unchanged, 1,655 untraded and 19 others suspended.

Turnover stood at 269.03 million units valued at RM83.78 million. 

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the Dow Jones Industrial Average lost 367 points, while the Nasdaq closed 132 points lower despite the US Treasury’s 10-year yield ending lower at 3.43 per cent.

Back home, he noted that the FBM KLCI broke out from its slumber to close above the 1,425 level yesterday.

“However, we reckon that buying activities would recede today ahead of another public holiday tomorrow, hence we expect the index to hover in the 1,420-1,430 range.

“Meanwhile, we believe the oil and gas stocks would experience more headwinds today following the decline in crude oil prices on expectations of another rate hike, coupled with the weak demand from China which saw the Brent crude dipping to around the US$75 per barrel,” he told Bernama.

Notably, Tenaga fell two sen to RM8.95, Petronas Chemicals eased four sen to RM7.16 and Petronas Gas shed 22 sen to RM17.00.

As for the other heavyweights, Maybank, Public Bank and CelcomDigi were flat at RM8.68, RM3.92 and RM4.40, respectively, CIMB slid two sen to RM5.07 and IHH Healthcare was down seven sen to RM5.77.

Among the actives, Hong Seng and Vinvest were flat at 12.5 sen and 20.5 sen, respectively, Destini added one sen to 8.5 sen, Pelikan reduced one sen to 76 sen and Bahvest was three sen lower at 33 sen. 

On the index board, the FBM Emas Index was down 26.17 points to 10,428.83, the FBMT 100 Index narrowed 25.55 points to 10,115.61 and the FBM Emas Shariah Index slid 33.29 points to 10,764.51.

The FBM ACE Index fell 31.17 points to 5,285.45 and the FBM 70 index erased 28.33 points to 13,528.97.

Sector-wise, the Industrial Products and Services Index edged down 0.95 points to 171.49, the Financial Services Index dropped 6.34 points to 15,596.38 and the Energy Index eased 7.16 points to 838.66, while the Plantation Index was 2.46 points higher at 6,795.40. — Bernama