KUALA LUMPUR, Sept 29 — Bursa Malaysia closed in the red today, dragged by profit taking in heavyweights led by Top Glove, Hartalega, Tenaga and PPB.

However, signs that US lawmakers were moving towards a new fiscal stimulus boosted investor sentiment and capped the local bourse from further weakening.

Still, caution remained as traders awaited the first 2020 US presidential debate today.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) erased 7.76 points to finish at the day’s low of 1,503.90 compared with Monday’s close of 1,511.66.

The index opened 1.09 points higher at 1,512.75 and reached as high as 1,517.33 during the day.

On the broader market, losers surpassed gainers 612 to 412, while 431 counters were unchanged, 654 untraded and 43 others suspended.

Total volume eased to 5.15 billion shares worth RM3.58 billion from 5.17 billion shares worth RM3.51 billion.

An analyst said the expiry of the blanket loan repayment moratorium, which may put the gross impaired loans ratio at a manageable level as the banking industry begins the targeted moratorium approach, helped pushed banking stocks higher today.

"The banking stocks’ price-to-book ratio had been low as investors were cautious in regard to the six-month loan moratorium.

"But now, with expected earnings recovery taking place in 2021, investors are returning to the banking sector before valuations turn lofty,” he told Bernama.

The analyst said furthermore, it was the end of the third quarter; therefore, many portfolio managers were taking the opportunity to buy fairly resilient stocks, including finance and banking stocks.

The same sentiment was seen around other equity markets.

Banks led the S&P 500 Index to its largest gain in a fortnight as investors found buying opportunities after the gauge fell last week to its lowest since July.

HSBC Holdings, for example, added almost nine per cent after its biggest shareholder, Ping An Insurance, raised its stake, while an index of lenders rose the most in a month.

At the close, heavyweights Maybank rose six sen to RM7.16 and Public Bank gained 16 sen to RM15.58 but Top Glove lost 30 sen to RM8.47 and Hartalega erased 42 sen to RM17.

Of the actives, XOX slipped 2.5 sen to 15 sen, Kanger International added half-a-sen to 21 sen, MMAG warrants gained 3.5 sen to 18.5 sen and mTouche was flat at 5.5 sen.

On the index board, the FBM Emas Index decreased 48.32 points to 10,838.97, the FBM Emas Shariah Index weakened 107.03 points to 12,938.02 and the FBM 70 narrowed 29.71 points to 14,172.89.

The FBMT 100 Index went down 46.72 points to 10,664.26, and the FBM ACE gave up 158.51 points to 9,895.34.

Sector-wise, the Financial Services Index climbed 79.71 points to 12,407.17 but the Plantation Index eased 1.06 points to 7,062.52, and the Industrial Products and Services Index edged down 0.54 point to 135.23.

Main Market volume fell to 2.45 billion shares valued at RM2.79 billion from 2.74 billion shares worth RM2.71 billion.

Warrants turnover increased to 667.64 million units worth RM160.82 million versus 511.26 million units worth RM145.67 million.

Volume on the ACE Market improved to 2.12 billion shares valued at RM632.91 million compared with 1.91 billion shares worth RM652.28 million.

Consumer products and services accounted for 646.62 million shares traded on the Main Market, industrial products and services (786.55 million), construction (173.20 million), technology (208.09 million), SPAC (nil), financial services (53.67 million), property (143.32 million), plantations (43.98 million), REITs (7.44 million), closed/fund (20,000), energy (201.52 million), healthcare (110.76 million), telecommunications and media (35 million), transportation and logistics (20.36 million) and utilities (24.25 million). — Bernama