Bursa Malaysia Ends Lower Amid Broad-based Selling
By Zufazlin Baharuddin
KUALA LUMPUR, Nov 12 (Bernama) -- Bursa Malaysia extended its losing streak for a fourth consecutive session, closing lower on Thursday amid continued broad-based selling that weighed on market sentiment, an analyst said.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 9.23 points or 0.57 per cent to 1,585.96 from Wednesday's close of 1,595.19.
The benchmark index opened 3.61 points lower at 1,591.58 and fluctuated between an intraday low of 1,583.66 and a high of 1,592.89 throughout the day.
Market breadth remained negative with losers thumping gainers 799 to 318, while 476 counters were unchanged, 1,181 untraded and 13 suspended.
Turnover climbed to 3.06 billion units valued at RM2.56 billion compared with yesterday’s 2.90 billion units valued at RM2.33 billion.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said investors are likely to remain cautious in the near term as persistent selling in banking stocks and other index heavyweights suggests that market confidence remains fragile.
Nevertheless, he believes that Malaysia's underlying economic fundamentals remain resilient, while corporate earnings prospects are generally stable.
“More importantly, the recent correction has brought valuations of selected blue chips to increasingly attractive levels, particularly banking stocks, which offer healthy prospective dividend yields.
“From a technical perspective, the FBM KLCI is approaching oversold territory, which could encourage bargain hunting at current levels,” he told Bernama.
Meanwhile, IPPFA director of investment strategy and country economist Mohd Sedek Jantan said the FBM KLCI fell to a year-to-date low as mounting external uncertainties triggered further risk reduction across Malaysian equities.
“Market sentiment remained fragile amid renewed concerns over stretched valuations in artificial intelligence-related stocks, a more hawkish US Federal Reserve rate outlook and stalled diplomatic negotiations between the United States and Iran, keeping geopolitical risks elevated.
“The combination of tighter global financial conditions, uncertainty surrounding the technology-led rally and persistent geopolitical tensions has weakened investor appetite for risk assets,” he said.
He said the index’s failure to reclaim the psychologically important 1,600 level reinforces its near-term bearish outlook, with the next downside support levels at 1,575 and 1,550.
Among the heavyweights, Maybank shed four sen to RM9.91, Tenaga Nasional lost 16 sen to RM12.80, while Public Bank was flat at RM4.53, CIMB perked up one sen to RM7.09, and IHH Healthcare gained 11 sen to RM7.84.
In active trade, V.S Industry eased one sen to 28.5 sen, GIIB Holdings slid five sen to 10.5 sen, YTL Power International reduced 39 sen to RM4.40, Nexgram slipped half-a-sen to 5.5 sen, and Ni Hsin declined two sen to 8.5 sen.
Among the top gainers, United Plantations rose RM1.36 to RM31.60, Malaysian Pacific Industries garnered 22 sen to RM38.52, Kuala Lumpur Kepong climbed 30 sen to RM21.38, Concrete Engineering Products added 22 sen to RM4.60, and SD Guthrie advanced 16 sen to RM6.15.
Nestle led the decliners, falling 60 sen to RM94.94, Fraser & Neave dipped 40 sen to RM20.14, UWC erased 31 sen to RM6.37, Ranhill Utilities sank 30 sen to RM2.90, and Hong Leong Industries gave up 40 sen to RM16.40.
--BERNAMA