KUALA LUMPUR: Bursa Malaysia closed lower, but the key index remained above the 1,600 psychological level. The decline was primarily due to profit-taking activities, says an analyst.
At 5pm, the FBM KLCI was lower by 6.87 points, or 0.43%, to 1,608.53 from yesterday’s close of 1,615.40. The benchmark index, which opened 0.59 of-a-point lower at 1,614.81, fluctuated between 1,608.53 and 1,622.65 throughout the trading session.
On the broader market, decliners surpass gainers 599 to 547, with 487 counters unchanged, 712 untraded and nine others suspended. Turnover declined to 4.28 billion units worth RM3.40bil from yesterday’s 4.46 billion units worth RM3.94bil.
UOB Kay Hian Wealth Advisers head of investment research Mohd Sedek Jantan said the FBM KLCI closed lower following a market surge on Tuesday.
“The decline was primarily due to profit-taking activities as investors’ concern about potential stagflation in the United States increased after the Job Openings and Labour Turnover Survey reported weaker-than-expected results.
“We believe concerns about US stagflation are merely market noise as they are not supported by other robust economic data. Warnings about the possibility of stagflation in the United States have periodically surfaced in 2021, 2022, and 2023,” he told Bernama.
The strong Purchasing Managers’ Index (PMI) data for May, indicating the first expansion since August 2022, suggest that outbound shipments of manufactured goods are expected to grow more rapidly in the second half of 2024.
“The manufacturing sector is poised for positive growth in 2024, supported by favourable global semiconductor market projections. Exports of electrical and electronic products, which constitute over 40% of Malaysia’s total exports, are expected to benefit significantly,” he added.
Among the heavyweights, Malayan Banking Bhd dropped eight sen to RM9.98, CIMB Group Holdings Bhd slipped 10 sen to RM6.89, Public Bank Bhd fell two sen to RM4.13 and IHH Healthcare Bhd edged down one sen to RM6.18.
Tenaga Nasional Bhd surged 28 sen to RM13.26. Among the actives, MyEG Services Bhd fell one sen to RM1.09 and SNS Network Technology Bhd slipped half-a-sen to 65 sen, but Dagang Nexchange Bhd increased two sen to 48 sen, Datasonic Group Bhd climbed 1.5 sen to 52 sen, and JCY International Bhd rose two sen to 61.5 sen.