Business

Bursa chalked meagre gains before succumbs into the red

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Syndicated News
Written by Syndicated News

KUALA LUMPUR, July 5 2019 : Bursa Malaysia chalked up meagre gains but succumbed into the red thereafter on Friday morning, as the key index remained in the overbought territory due to its recent uptrend.

At 9.05 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 2.15 points lower at 1,685.33 from yesterday’s close of 1,687.48.

At the opening, the index ticked up 0.12 of-a-point to 1,687.60.

However, market breadth was positive with 119 gainers outpacing 91 losers, while 164 counters unchanged, 1,473 untraded and 21 others suspended.

Turnover stood at 129.42 million units worth RM40.76 million.  

In a note today, Malacca Securities Sdn Bhd said it believed the recent gains were already overdone after the key index gained some eight per cent from its year-low a month ago.

“We think the recovery has more-than-reflected corporate Malaysia’s fundamental prospects for the year that has also left it overbought. 

“Moreover, the FBM Small-Cap index is becoming increasingly overbought after the recent uptrend and a pullback is already due, consequently, profit-taking activities could set in over the near term as market players could opt to lock in some of their profits ahead of the weekend, ” it said.

Hence, the research house expected the overbought could prolong the consolidation spell into the final trading session of the week.

Technically, on the downside, the resistances are at 1,680 to 1,682 levels, followed by the 1,670 level, while the resistances, meanwhile, are at 1,694 and 1,700 respectively, it added.

Among heavyweights, Maybank and Tenaga shed two sen each to RM8.96 and RM14.12, respectively, CIMB slid one sen to RM5.29 while Public Bank and Petronas Chemicals were unchanged at RM23.00 and RM8.62.

Of the actives, KNM and its warrant went up one sen each to 31 sen and 14 sen, respectively, Green Packet also perked one sen to 39 sen, while Sumatec and DGSB were flat at 3.5 sen and 11 sen, respectively.

Axiato emerged as the top loser, erasing five sen to RM5.21, while top gainer, Yinson, gained 11 sen to RM6.76.

The FBM 70 shrank 7.54 points to 14,930.86, the FBMT 100 Index gave up 12.84 points to 11,764.01 and the FBM Ace trimmed 0.78 of-a-point to 4,622.28.

The FBM Emas Index shed 11.34 points to 11,927.59 and the FBM Emas Shariah Index was 10.20 points easier at 12,324.09. 

Sector-wise, the Financial Services Index contracted 13.82 points to 16,768.83, while the Industrial Products & Services Index propped up 0.08 of-a-point to 162.12 and the Plantation Index advanced 1.92 points to 6,945.39. – Bernama   

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Syndicated News

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News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.