Business

Bursa lower over mounting concern among investors

Syndicated News
Written by Syndicated News

KUALA LUMPUR, May 8 2019 : Shares on Bursa Malaysia were lower across the board, amid mounting concern among investors over the dimming prospects of a trade agreement between Beijing and Washington.

At 9.02 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) erased 6.96 points to 1,632.41, from yesterday’s close of 1,639.37.

The index opened 3.81 points weaker at 1,635.56. 

On the broader market, losers edged gainers 241 to 39, with 127 counters unchanged, 1,499 untraded and 19 others suspended.

Turnover stood at 80.11 million shares worth RM36.24 million.

Although stocks made a strong comeback yesterday in anticipation of an interest rate cut and the proposed merger of two telco giants, Malacca Securities Sdn Bhd maintained its view that the market undertone is still fragile amid an escalation of the trade war rhetoric between the US and China.

“We saw yesterday’s upsides as temporary and the downside pressure will likely return. The lower liner’s rebound on Tuesday was more modest, but with the trade war uncertainties returning, there is the possibility that quick profit taking activities are likely to set-in,” the research house said.

Malacca Securities also said the unsettled environment would also spread to the broader market and prompt profit taking actions as well.

“Economist were also anticipating the interest rate cut only in the second half of 2019 and Bank Negara Malaysia’s move to lower interest rate yesterday as pre-emptive action against a possible quicker-than-expected slowdown in the Malaysian economy that could also dampen bank earnings, going forward”.

Among heavyweights, Maybank fell four sen to RM8.95, Public Bank dropped 18 sen to RM22.30, Petronas Chemicals was flat at RM9.05 while Maxis was three sen better at RM5.50.

Of the actively-traded stocks, Bumi Armada and MQ Technology fell half-a-sen each to 21 sen and four sen respectively, Ekovest inched down two sen to 89 sen, while Xinghe was flat at 2.5 sen.

The FBM Emas Index declined 56.51 points to 11,529.73, the FBMT 100 Index erased 52.93 points  to 11,363.08 and the FBM Emas Shariah Index decreased 66.38 points to 11,765.43.

The FBM 70 lost 84.61 points to 14,293.82 and the FBM Ace fell 56.00 points to 4,553.49.

Sector-wise, the Financial Services Index dropped 52.13 points to 16,650.74, the Plantation Index declined 41.15 points to 7,145.08 and the Industrial Products & Services Index was 0.18 of-a-point lower at 168.79. – 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.