BURSA MALAYSIA ENDS LOWER ON HEAVY SELLING IN TECH, UTILITY STOCKS

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Jan 13 (Bernama) -- Bursa Malaysia's benchmark index ended lower today, weighed down by heavy selling in technology and utility blue chips, reflecting the ripple effect from a sell-off on Wall Street last Friday.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 16.82 points, or 1.05 per cent, to 1,585.59 compared with last Friday’s close of 1,602.41.

The benchmark index, which opened 3.45 points lower at 1,598.96, moved between 1,578.97 and 1,599.36 during the day.

Decliners thumped advancers by 913 to 211, with 450 counters unchanged, 795 untraded and 39 suspended.

Turnover increased to 2.85 billion units valued at RM2.54 billion against last Friday’s 2.52 billion units valued at RM2.42 billion.

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said investors reacted to lower expectations of interest rate cuts by the US Federal Reserve (Fed) this year, as robust indicators, such as last Friday's non-farm payroll report and a declining unemployment rate, signal a strengthening economy.

“While these are positive signs for economic fundamentals, they also raise concerns about inflation, potentially making a rate cut less likely.

“This has created uncertainty and impacted global markets, contributing to the FBM KLCI's negative performance,” he told Bernama.

He said the index ended the day below the critical psychological level of 1,600, with market dynamics and emotion-driven sentiment amplifying the sell-off.

“However, it is important to note that market sentiment and investor behaviour can deviate significantly from fundamentals.

“Moreover, the accumulated decline, which has been building since last week, presents a potential buying opportunity for investors seeking to capitalise on undervalued positions,” he added.

Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said for this week, global attention will focus on major US data releases such as the December producer price index on Tuesday, consumer price index on Wednesday, retail sales on Thursday, and industrial production on Friday.

“Back home, we are cautious about the market due to external factors. We believe technology and related stocks will come under further pressure due to a knee-jerk reaction to US President Joe Biden's stringent new regulations on advanced artificial intelligence chip exports.

“While the benchmark index may face challenges from rising global uncertainties and volatility, nonetheless, the attractive valuations of blue chips are expected to sustain accumulation,” he said.

“Hence, the FBM KLCI is expected to trend within the 1,580-1,600 range for the week, representing key support and resistance levels,” he added.

Among the heavyweights, Maybank fell two sen to RM10.08, CIMB dropped eight sen to RM8.10 and Tenaga slid 20 sen to RM13.90. Public Bank gained one sen to RM4.45 and IHH added four sen to RM7.10.

As for the active stocks, Swift Energy eased one sen to 37.5 sen, Key Alliance inched down half-a-sen to 0.5 sen, YTL Power slipped 25 sen to RM4.00, Nationgate declined 12 sen to RM2.33 and MYEG trimmed two sen to 94.5 sen.

On the index board, the FBM Emas Index dropped 123.40 points to 12,179.36, the FBMT 100 Index shrank 119.18 points to 11,864.65, and the FBM ACE Index tumbled 107.44 points to 5,246.03, while the FBM Emas Shariah Index slipped 139.88 points to 12,110.86, and the FBM 70 Index slid 159.10 points to 18,308.44.

By sector, the Industrial Products and Services Index shed 2.20 points to 168.46, the Energy Index climbed 2.49 points to 835.79, the Financial Services Index decreased 91.38 points to 18,833.15, and the Plantation Index declined 67.67 points to 7,442.95. 

The Main Market volume improved to 1.51 billion units worth RM2.29 billion against last Friday’s 1.45 billion units worth RM2.19 billion.

Warrants turnover expanded to 856.91 million units valued at RM82.83 million versus 678.03 million units valued at RM68.55 million previously.   

The ACE Market volume advanced to 484.47 million units worth RM167.11 million from 390.05 million units worth RM159.37 million on Friday.

Consumer products and services counters accounted for 198.27 million shares traded on the Main Market, industrial products and services (301.39 million), construction (99.08 million), technology (230.66 million), SPAC (nil), financial services (61.29 million), property (208.71 million), plantation (33.58 million), REITs (10.12 million), closed/fund (20,500), energy (139.53 million), healthcare (61.56 million), telecommunications and media (46.71 million), transportation and logistics (26.24 million), utilities (93.02 million), and business trusts (281,000).

Meanwhile, in a filing with Bursa Malaysia today, Gamuda Bhd said trading in its securities has been halted from 3.47 pm, Jan 13, 2025, and will resume trading from 9.00 am, Jan 14, 2025.

-- BERNAMA