Bursa Malaysia opens higher but retreats thereafter

Bursa Malaysia opens higher but retreats thereafter

KUALA LUMPUR: Bursa Malaysia opened higher today but retreated thereafter after a strong showing in the past two days despite the overnight US stocks strong performance.

The investors on Wall Street were reacting positive to the news that US lawmakers were nearing a coronavirus relief deal and the Federal Reserve indicated most officials expected rates to remain near zero for years, dealers said.

At 9.08am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was 5.24 points lower at 1,676.17 compared to Wednesday’s close of 1,681.41.

It opened 2.86 points better at 1,684.27.

The overall market breadth was also negative as losers led gainers 280 to 257, while 415 counters were unchanged, 1,191 untraded and 45 others suspended.

Volume stood at 596.75 million units worth RM233.25 million.

In a note today, Malacca Securities Sdn Bhd said with the US stock markets inching higher overnight, the local market is expected to follow suit but the market might see profit-taking emerging.

“Covid-19 cases observed in several glove companies might prompt to some selling activities after a two-day rebound in glove manufacturers stocks.

“Meanwhile, the ongoing market talks on the Kuala Lumpur-Singapore High-Speed Rail, we opined traders will continue to trade within the construction and property sectors, “ it said.

On another note, the Brent oil price surged above US$51 per barrel on the back of crude oil inventory decline by 3.1 million barrels last week and this would also provide support to the local market.

For the sector in focus, it added that besides the construction, building materials, as well as property sectors, the recovery-themed sectors such as banking and consumer would also be lifted amid the window dressing period.

Among the heavyweights, Maybank shed five sen to RM8.62, Public Bank and Tenaga reduced six sen each to RM21.82 and RM10.70, respectively, Top Glove eased four sen to RM6.73, while Petronas Chemicals added one sen to RM7.61.

Of the actives, Seacera warrant gained five sen at 5.5 sen, Mah Sing rose 4.5 sen to 97.5 sen and Tiger Synergy edged up half-a-sen to 17 sen.

Sunzen Biotech warrant eased half-a-sen to 2.5 sen and Sino Hua-An was flat at 19 sen.

On the index board, the FBM Emas Index was 28.51 points lower at 12,072.48, the FBMT 100 Index slipped 39.90 points to 11,823.60, the FBM 70 shed 48.37 points to 15,486.44, the FBM ACE fell 48.38 points to 10,537.88, and the FBM Emas Shariah Index lost 10.13 points to 13,423.33.

Meanwhile, the Industrial Products and Services Index inched up 0.55 of-a-point to 176.36, the Plantation Index perked 41.71 points to 7,405.48, but the Financial Services Index dropped 95.89 points to 15,854.01.-Bernama

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