Business

Bursa extends downward trend due to absence of direction

Syndicated News
Written by Syndicated News

KUALA LUMPUR, Sept 20 2019 : Bursa Malaysia opened higher but retreated thereafter, extending yesterday’s downward trend, as investors stayed on the sidelines due to absence of direction. 

At 9.05 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 0.45 of-a-point to 1,595.83 from yesterday’s close of 1,596.28.

The index opened 1.33 points better at 1,597.61.

Market breadth was negative as losers edged the winners 88 to 84, with 170 counters unchanged, 1,645 untraded and 18 others suspended.

Turnover stood at 126.58 million shares worth RM39.60 million.  

Malacca Securities Sdn Bhd said players on Malaysian equities are still wary over the country’s fundamentals amid the insipid economic environment that is also likely to affect corporate earnings growth prospects.

“Despite the most recent market pullback, the FBM KLCI’s valuations are still not compelling as the forward price-to-earnings ratios (PERs) are within its historical averages hence, leaving little upside potential unless there are firmer earnings growth prospects.

“At the same time, the upcoming decision on whether Malaysian Government Bonds will remain in the FTSE World Government Bond Index could also weigh on sentiments for longer,” it said in a research note today.

The research house said under the prevailing environment, the mixed-to-lower market environment is likely to continue over the near term with the 1,590 and 1,580 levels remaining as the supports.

“On the other hand, the resistances are at 1,600 and 1,610 respectively,” it said.

Of the top losers, KL Kepong lost 38 sen to RM23.02, KESM Industries falling 15 sen to RM7.10 and Digi easing five sen to RM4.71.

However, gains in key index-linked led by Maybank which rose one sen to RM8.65 and TNB which advanced 10 sen to RM13.72, have capped the index from trading lower.

Among heavyweights, Public Bank and CIMB Group lost two sen each to RM20.14 and RM5.02, Petronas Chemicals added five sen to RM7.75, while Maxis was flat at RM5.70.

The FBM Emas Index declined 3.47 points to 11,273.12, the FBMT 100 Index dropped 6.39 points to 11,103.05 and the FBM Emas Shariah Index went down 4.13 points to 11,828.04.

The FBM 70 depreciated 21.47 points to 13,941.96 but the FBM Ace fell 9.70 points to 4,535.24.

Sector-wise, the Financial Services Index rose 10.63 points to 15,433.72, the Plantation Index weaker by 21.69 points to 6,764.43 and the Industrial Products & Services Index was 0.40 of-a-point higher at 154.77. – 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.