Bursa mixed on global market anxiety

Syndicated News
Written by Syndicated News

KUALA LUMPUR, Sept 27 2019 : Bursa Malaysia opened mixed today on the back of global market anxiety regarding imminent economic slowdown following reports by the United Nations. 

At 9.07 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) declined 3.17 points to 1,589.83 from yesterday’s close of 1,593.00. 

However, on the broader market, gainers surpassed losers 119 to 73, while 177 counters were unchanged, 1,632 untraded and 71 others suspended.

Turnover amounted to 116.48 million shares worth RM41.66 million.

A report by the UN trade development body, Unctad said weaker growth in both advanced and developing countries gives a clear indication that a global recession in 2020 is a clear and present danger. 

In its flagship report, it said that 2019 will endure the weakest expansion in a decade and there was a risk of the slowdown turning into outright contraction next year.

“The warning lights were flashing around trade wars, currency gyrations, the possibility of a no-deal Brexit and movements in long-term interest rates,” it said. 

Meanwhile, Malacca Securities in its equity report today said that the decision by index provider FTSE Russell in retaining Malaysian government bonds on the watch list would provide some reprieve over the near term to accord the government some space to add liquidity to the bonds.

“With the exclusion risk abating for now, we also see the positivity extending to Malaysian equities over the near term and to cast aside the slight weakness on Wall Street overnight,” it said. 

In a statement released yesterday, the index provider said it will provide another update after an interim review in March, which would give the Malaysian central bank time to potentially explore more measures to enhance liquidity.

On index performance, heavyweights Tenaga Nasional, Maxis and Digi all rose two sen to RM13.44, RM5.40, RM4.76 respectively while Sime Darby Plantation and MISC rose five sen to RM4.93 and RM7.75 respectively. 

As for the actives, Sapura Energy, Prestariang and V.S Industry all gained one sen to 29.5 sen, 50.5 sen and RM1.38 respectively, Prinsiptek and Vsolar inched half-a-sen to 14.5 sen and 7 sen respectively. 

 The FBM Emas Index slipped 18.85 points to 11,252.31, the FBMT 100 Index contracted 19.17 points to 11,085.16 and the FBM Emas Shariah Index was 28.68 points lower at 11,788.94.

The FBM 70 slipped 11.95 points to 14,018.05 and the FBM Ace rose 1.25 points to 4,586.84. 

Sector-wise, the Financial Services Index erased 13.63 points to 15,429.64 and the Plantation Index accrued 5.08 points to 6,779.23, but the Industrial Products & Services Index was 0.22 point lower at 153.07. – Bernama



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Syndicated News

Syndicated News

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