Bursa Opens Higher but Retreats on Lack of Catalysts
Market Update
Bursa Malaysia opened higher on Thursday but turned lower thereafter following a lack of catalysts amid Wall Street’s soft performance amid sticky inflation data and trading slowing ahead of the US Thanksgiving holiday.
Index Performance
At 9.10am, the FTSE Bursa Malaysia KLCI (FBM KLCI) slid 1.73 points to 1,602.25 from Wednesday’s close of 1,604.25. The benchmark index opened 2.07 points higher at 1,606.32.
Market Activity
Decliners beat advancers 251 to 143, while 281 counters remained unchanged, 1,794 untraded and 89 suspended. Turnover totalled 222.49 million units valued at RM147.84 million.
Analyst Views
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said cautious sentiment remains given president-elect Donald Trump’s imminent tariffs threats, in addition to the latest US personal consumption expenditure (PCE) index in October, which came in within expectations. The US core PCE edged higher to 2.8% in October and may affect the next Fed’s rate cut decision as inflation remains sticky. Despite these worries, he said meaningful gains expected from the blue chips might help the local FBM KLCI to remain above the 1,600 level. Overall, he expects the index to hover within the 1,600-1,610 range today.
Trading Opportunities
Meanwhile, Malacca Securities Sdn Bhd foresees trading opportunities continuing in the utilities sector following the bullish momentum of YTL-related counters. “The spike in several technology results may lift the sentiment for semiconductor-related counters,” it said in a note, adding that aviation, hospitality, and consumer sectors are also likely to remain positive, given the recent stronger earnings from airports and the upcoming holiday and festive seasons.
Stock Performance
Heavyweights Maybank, CIMB, and Tenaga Nasional were flat at RM10.18, RM8.37, and RM13.98, respectively. Public Bank was lower by one sen to RM4.43, and IHH eased two sen to RM7.23.
Active Stocks
Among the active stocks, Nationgate shrank 27 sen to RM2.08, Notion Vtec gained one sen to RM1.21, Genetec Technology lost two sen to RM1.15, SMTrack rose half-a-sen to 2.0 sen, and Ekovest was one sen lower at 35 sen.
Index Board
On the index board, the FBM Emas Index slipped 14.92 points to 12,176.05, the FBMT 100 Index fell 12.99 points to 11,874.56, the FBM Emas Shariah Index dropped by 8.52 points to 112,874.56, the FBM 70 Index decreased 20.24 points to 17,898.67, and the FBM ACE Index gave up 16.57 points to 5,162.17.
Sector Performance
Sector-wise, the Financial Services Index fell 36.98 points to 19,199.86, the Plantation Index trimmed 15.38 points to 7,465.92, the Energy Index reduced 0.79 of-a-point to 817.90, and the Industrial Products and Services Index lost 0.63 of-a-point to 171.06.
Conclusion
In conclusion, Bursa Malaysia opened higher but retreated on Thursday due to a lack of catalysts, despite the benchmark index opening higher. Analysts expect the index to hover within the 1,600-1,610 range today, with trading opportunities continuing in the utilities sector and other sectors showing positive signs.
FAQs
Q: Why did Bursa Malaysia open higher but retreat on Thursday?
A: The benchmark index opened higher due to a lack of catalysts, with analysts citing president-elect Donald Trump’s imminent tariffs threats and sticky inflation data.
Q: What is the current performance of the FTSE Bursa Malaysia KLCI (FBM KLCI)?
A: The FBM KLCI slid 1.73 points to 1,602.25 from Wednesday’s close of 1,604.25.
Q: What are the trading opportunities in the utilities sector?
A: Malacca Securities Sdn Bhd foresees trading opportunities continuing in the utilities sector following the bullish momentum of YTL-related counters.