Bursa returns to red amid global slowdown

Syndicated News
Written by Syndicated News

KUALA LUMPUR, Aug 15 2019 : Intensifying global uncertainties and slowdown in major economies dragged Bursa Malaysia into the red at the opening today.  

At 9.05 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 16.14 points to 1,584.17, below the psychological support level of 1,590 from yesterday’s close of 1,600.31. 

The index was opened 15.40 points lower at 1,584.91. 

Medium-sized capital saw the sharpest decline with a 1.8 per cent drop followed by the technology sector with 1.74 per cent and small-sized capitals 1.6 per cent. 

On the broader market, losers overwhelmed gainers 429 to 23, while 97 counters were unchanged, 1,384 untraded and 17 others suspended.

Turnover stood at 140.63 million units worth RM83.65 million.

Malacca Securities Sdn Bhd said following a stable session yesterday, Bursa was expected to come under selling pressure after overnight rout on global equities with bond yields remained inverted – heightening recession fears and dampening sentiments on equities.

“Even with the U.S. delaying further tariffs on China-made goods, market conditions will remain guarded as the trade squabble shows no signs of easing and the issue could remain long-drawn,” it said.

At the technical forefront, it said that the key index is now below the 1,600 support level, and has been revised to 1,590 and 1,580 levels, while the resistances are at the 1,610 and 1,620 respectively.

“The local bourse is unlikely to find much solace as the broad market sentiments are staying cautious, due in part to the ongoing threats to the global economic environment and the still unresolved trade spat between the U.S. and China that is likely to keep sentiments in check for longer,” it said. 

Among the top losers was Nestle which shed 60 sen to RM146.00, Genting Plantation declined 33 sen to RM24.02, Public Bank shed 32 sen to 20.48, Kuala Lumpur Kepong lost 26 sen to RM23.36 and Hong Leong Financial was down 20 sen to RM17.06. 

As for heavyweights, Maybank and CIMB lost three sen to RM8.56 and RM5.06 respectively, Tenaga Nasional reduced 12 sen to RM13.50, Petronas Chemical slid 17 sen to RM7.14, and IHH dropped two sen to RM5.64. 

For the most active stocks, KNM reduced 1.5 sen to 36.5 sen, Ekovest weakened two sen to 80 sen, Berjaya Corp and Sapura Energy shed half-a-sen to 22.5 sen and 27 sen respectively. 

The FBM Ace contracts 88.84 points to 4,553.02, the FBM 70 down 208.86 points to 13,970.35, the FBM Emas Index lost 129.04 points to 11,206.94, the FBM Emas Shariah Index depreciated 147.83 points to 11,693.99 and the FBMT 100 Index slid 124.87 points to 11,046.10.

Sector-wise,  the Financial Services Index was 132.60 points lower at 15,547.69, the Plantation Index discounted 91.31 points to 6,630.69, and the Industrial Products and Services Index inched down 2.25 points to 148.90. – 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.