Bursa slides as new US developments trigger profit-taking

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KUALA LUMPUR: A US jobs report that indicated robust employment in the private sector coupled with hawkish minutes from the Federal Reserve sent Wall Street lower overnight, while global markets are set to follow.


At the opening bell, Malaysia’s benchmark stock index was down 3.75 points to 1,382.20.

According to TA Securities Research, persistent fears over the higher interest rate and the weaker regional growth outlook should continue to dampen sentiment in the near term.

“Immediate overhead index resistance stays at 1,400, with 1,420, followed by the 200-day moving average at 1,440, acting as stronger resistance levels.

“Crucial chart supports are at the recent pivot low of 1,369, and 1,350,” it said in a note.

Malacca Securities Research noted that the FBM KLCI failed to gain momentum despite Bank Negara maintaining the overnight policy rate at 3%.

“We reckon that the downward bias trading tone may linger over the foreseeable future as investors may keep their hands off until further clarity after the six states election on 12th of August.

“Also, the resumption of selling activities from foreign funds and the weakness in ringgit against major currencies continues to dampen the trading interest,” it said in a report.


On the blue-chip index, there was selling across sectors with banking leading the decline.

Maybank dropped three sen to RM8.70, CIMB fell three sen to RM5.18 and Hong Leong Bank slid four sen to RM18.88.

Meanwhile, Maxis fell four sen to RM3.98 and Kuala Lumpur Kepong shaved two sen to RM22.82.

Press Metal was down three sen to RM4.72 and PETRONAS Gas slid two sen to RM16.88.

Most active on the market were Bahvest up one sen to 23.5 sen, SCIB unchanged at 46.5 sen and EA Holdings down 0.5 sen to 0.5 sen.

– The Star

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