KUALA LUMPUR (Dec 21): Bursa Malaysia opened slightly lower on Wednesday (Dec 21) despite gains on Wall Street overnight amid market jitters on interest rates, following Bank of Japan’s (BOJ) move to tighten its monetary policy, said an analyst.
At 9.05am, the benchmark FBM KLCI had fallen 0.05% or 0.77 of a point to 1,466.55, from Tuesday’s closing at 1,467.32.
The market bellwether opened 0.31 of a point easier at 1,467.01.
On the broader market, advancers led decliners 126 versus 110, while 220 counters were unchanged, 1,808 untraded and 22 others suspended.
Turnover stood at 106.11 million units worth RM40.13 million.
Malacca Securities Sdn Bhd said the KLCI was in line with a slump in regional markets, after the BOJ widened the allowable band for long-term yields to 50 basis points from 25 basis points on Tuesday.
“Nevertheless, we believe the key index is poised for a rebound amid reduced selldown by foreign investors as well as a rebound on Wall Street overnight.
“Also, window-dressing activities may kick in towards year end,” the brokerage firm said in a note on Wednesday.
Commodities-wise, the Brent crude oil price traded below US$80, while the crude palm oil price retreated below RM3,950, as a drop in exports from Malaysia stoked concern about weaker demand, it said.
It added the construction and building material sectors may gain traction as the Ministry of Transport agreed to review five development projects, with a total contract value of RM650 million.
“Meanwhile, we favour the consumer, oil and gas, as well as technology sectors for the session — the latter could rebound in view of the slightly positive mood on Wall Street,” it said.
Among the heavyweights, Malayan Banking Bhd (Maybank) gained one sen to RM8.71 a share, Petronas Chemicals Group Bhd added six sen to RM8.24, and CIMB Group Holdings Bhd lost three sen to RM5.79, while Public Bank Bhd was unchanged at RM4.37, and Tenaga Nasional Bhd (TNB) was flat at RM9.18.
Of the actives, Nylex (Malaysia) Bhd rose 4.5 sen to 36.5 sen, Opcom Holdings Bhd improved three sen to 76 sen, and YX Precious Metals Bhd ticked up 1.5 sen to 25 sen, while Industronics Bhd inched down by half a sen to 10.5 sen, and Jaks Resources Bhd eased 1.5 sen to 26.5 sen.
On the index board, the FBM Emas Index advanced 0.26 of a point to 10,533.11, the FBM Emas Shariah Index was 5.38 points higher at 10,646.45, the FBM 70 Index strengthened 21.35 points to 12,884.56, and the FBM ACE Index increased 25.18 points to 5,499.51.
However, the FBMT 100 Index trimmed 0.38 of a point to 10,239.84.
Sector-wise, the Plantation Index lost 33.57 points to 6,788.01, and the Financial Services Index slid 17.90 points to 16,530.45.
The Energy Index inched up 3.32 points to 786.52, and the Industrial Products and Services Index recovered 0.39 of a point to 178.12. -BERNAMA