Bursa Malaysia opens lower due to profit taking

KUALA LUMPUR, August 2 — Bursa Malaysia started the day on a lower note as investors continued profit-taking, influenced by Wall Street's mixed performance in the previous session.

As of 9.10am, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 2.99 points to 1,448.25 from Tuesday's closing level of 1,451.24.

The main index started the day with a decline of 1.79 points at 1,449.45.

In the broader market, decliners outnumbered advancers with a ratio of 147 to 126, while 260 counters remained unchanged, 1,732 were untraded, and 17 others were suspended.

The total turnover amounted to 203.32 million units valued at RM89.52 million.

Malacca Securities Sdn Bhd reported that Wall Street concluded with a mixed performance, as the Dow Jones Index recorded a modest 0.2 percent gain, while the S&P 500 and Nasdaq declined by 0.3 percent and 0.4 percent, respectively. This outcome was attributed to the varied results of corporate earnings.

In Malaysia, the S&P Global Malaysia Manufacturing PMI for July 2023 recorded a reading of 47.8, indicating a continued slowdown in business conditions with a recovery in demand still some distance away.

Despite the challenging conditions, analysts view the current pullback as a healthy correction, allowing the market to digest recent gains.

Furthermore, the lower liners in the market are undergoing a consolidation phase as traders adopt a cautious approach and adopt a wait-and-see stance ahead of the state election, according to the brokerage's note.

Regarding sector performance, defensive sectors like healthcare, utilities, and REITs may come into focus amid emerging signs of volatility. On the other hand, the technology sector may mirror the weakness seen in the Nasdaq overnight.

Among the heavyweight stocks, Maybank declined four sen to RM8.95, CIMB fell five sen to RM5.47, Tenaga Nasional slid two sen to RM9.53, and Petronas Chemicals decreased six sen to RM6.79. Meanwhile, Public Bank remained unchanged at RM4.12.

In terms of active stocks, Revenue, Advance Synergy, and Widad each saw an increase of half-a-sen to 26.5 sen, 16.5 sen, and 43 sen, respectively. Tanco and its warrants remained unchanged at 54.5 sen and 22.5 sen, respectively.

On the index board, there were declines observed in several indices: the FBM Emas Index dropped 18.74 points to 10,639.83, the FBMT 100 Index decreased 18.74 points to 10,333.71, the FBM Emas Shariah Index weakened 15.20 points to 10,907.59, the FBM ACE Index eased 13.65 points to 5,293.76, and the FBM 70 Index declined 14.43 points to 13,956.78.

In terms of sectors, the Plantation Index saw a decline of 6.20 points to 7,138.21, the Industrial Products and Services Index reduced by 0.43 of a point to 167.14, and the Financial Services Index slid by 47.52 points to 16,144.74. However, the Energy Index showed a slight increase of 4.64 points to 837.75.