‘Mixed feeling’ on Bursa Malaysia as sentiments affected by growth prospects

KUALA LUMPUR, Feb 14 — Bursa Malaysia opened with mixed feelings on Valentine’s Day as a possibility of another round of interest rate cut by Bank Negara Malaysia to combat slower economic growth dampened market sentiments.

At 9.09am, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.25 points to 1,536.91 from yesterday’s close of 1,539.16, after opening 0.44 points weaker at 1,538.72 this morning.

However, gainers led losers by 155 to 120 on the broader market, with 205 counters unchanged, 1,498 untraded and 33 others suspended.

Turnover amounted to 154.88 million shares worth RM83.68 million.

In a note, Malacca Securities Sdn Bhd said Bursa Malaysia was not spared from the selling activities after BNM hinted on another Overnight Policy Rate (OPR) cut soon, and at the same time, the spike in the number of Covid-19 casualties might see economic growth continue to stall.

“With the barrage of negative news on the forefront, the negative market sentiment is expected to prolong as the key index looks to end the week on a negative tone. Further weakness may drag the local bourse towards the 1,535 level, with the next key support located at the 1,515 level. Any recovery will be taken as a dead-cat bounce with gains capped at the 1,555 resistance level.

“Although the FBM KLCI remained frail, the lower liners continue to demonstrate resilience on the back of rotational play. We also note that trading interest was particularly firm in the construction sector amid reports on the upcoming resumption of KL-Singapore High Speed Rail,” it added.

Among heavyweights on Bursa Malaysia, Maybank eased three sen to RM8.43, Tenaga added two sen to RM12.60, Tenaga declined 14 sen to RM17.66 and Petronas Chemicals decreased three sen to RM6.47.

Of the actives, Ekovest rose 1.5 sen to 76 sen, while Securemetric and Netx Holdings were unchanged at 15 sen and two sen each.

On the index board, the FBM Emas Index decreased 5.59 points to 11,018.30, the FBM Emas Shariah Index rose 4.20 points to 11,831.48 and the FBMT 100 Index declined 5.79 points to 10,807.16.

The FBM 70 was 33.43 points higher at 14,040.93 and the FBM Ace increased 5.17 points to 5,619.33.

Sector-wise, the Industrial Products and Services Index inched up 0.12 of-a-point to 146.19, the Financial Services Index was 36.56 points lower at 14,539.90 and the Plantation Index rose 24.14 points to 7,315.29. — Bernama