At the close, the FBM KLCI slid 7.45 points or 0.45% to 1,635.32 from Tuesday’s close of 1,642.77.
KUALA LUMPUR: Bursa Malaysia ended lower yesterday as profit-taking persisted following the recent strong rally, with key regional indices also trending downwards, influenced by negative cues from Wall Street overnight.
At the close, the FBM KLCI slid 7.45 points or 0.45% to 1,635.32 from Tuesday’s close of 1,642.77. The benchmark index opened 1.05 points lower at 1,641.72 and moved between 1,633.64 to 1,646.38 throughout the trading session.
On the broader market, losers beat gainers 573 to 508, with 502 counters unchanged, 897 untraded, and seven others suspended.
Turnover dwindled to 3.27 billion units valued at RM2.90bil from 4.19 billion units worth RM4.55bil on Tuesday.
UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the decline in the FBM KLCI was driven by expectations of continued US dollar weakness and potential downward revisions to United States employment data, prompting some investors to secure profits.
“Despite this, the recent trends suggest a shift in foreign investor preferences towards emerging markets, including Malaysia. This shift can be attributed to the widening interest rate differential between emerging markets and the US Federal Reserve’s funds rate,” he told Bernama.
Mohd Sedek said that stable interest rates in emerging markets have strengthened local currencies, making these markets more attractive to foreign investors.
“Furthermore, the stronger currencies have made large-cap sectors with foreign-denominated loans more appealing, as the cost of servicing these loans has decreased,” he added.
Among the heavyweights, CIMB Group
Holdings Bhd increased four sen to RM7.89, Malayan Banking Bhd fell eight sen to RM10.52, Public Bank Bhd dropped four sen to RM4.63 and Tenaga Nasional Bhd decreased 10 sen to RM13.90, while IHH Healthcare Bhd was flat at RM6.32.
Among the actives, My E.G. Services Bhd rose 1.5 sen to 92 sen, Cape EMS Bhd increased 2.5 sen to 42.5 sen, while Top Glove Corp Bhd and Wentel Engineering Holdings Bhd decreased half-a-sen each to 99.5 sen and 33 sen, respectively and YTL Power International Bhd declined 11 sen to RM3.75.
