Profit-Taking and Weak Regional Markets Drag FBM KLCI Lower
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Bursa Malaysia remained on a downward trajectory by midday, with $FTSE Bursa Malaysia KLCI Index (.KLSE.MY)$ falling by 6.93 points, or 0.42%, to 1,634.60. This decline was attributed to profit-taking activities in selected heavyweights, including major banks, as well as weaker regional market sentiment. The market opened 2.48 points lower at 1,639.05, fluctuating between a high of 1,643.08 and a low of 1,634.12 throughout the morning session. Decliners outpaced gainers by 639 to 228, with 467 counters remaining unchanged.
Heavyweights Under Pressure
Key heavyweights contributed to the market’s losses, with notable declines in financial stocks such as $MAYBANK (1155.MY)$, $PBBANK (1295.MY)$, and $CIMB (1023.MY)$. $MAYBANK (1155.MY)$ and $PBBANK (1295.MY)$ dropped by four sen each, closing at RM10.58 and RM4.51, respectively, while $CIMB (1023.MY)$ slipped by two sen to RM8.16. While $TENAGA (5347.MY)$ remained flat at RM14.42, $IHH (5225.MY)$ saw a gain of 12 sen, closing at RM7.33.
Broader Market Performance
Across the broader market, turnover stood at 1.43 billion units, valued at RM916.66 million. The market continued to reflect weak sentiment, driven by uncertainties in regional markets and subdued performance on Wall Street. $Bursa Technology (0005I.MY)$ sector also felt the effects of global market weaknesses, particularly after concerns arose about $NVIDIA (NVDA.US)$ AI chip flaw, though $Taiwan Semiconductor (TSM.US)$ addressed some of these concerns.
Key heavyweights contributed to the market’s losses, with notable declines in financial stocks such as $MAYBANK (1155.MY)$, $PBBANK (1295.MY)$, and $CIMB (1023.MY)$. $MAYBANK (1155.MY)$ and $PBBANK (1295.MY)$ dropped by four sen each, closing at RM10.58 and RM4.51, respectively, while $CIMB (1023.MY)$ slipped by two sen to RM8.16. While $TENAGA (5347.MY)$ remained flat at RM14.42, $IHH (5225.MY)$ saw a gain of 12 sen, closing at RM7.33.
Broader Market Performance
Across the broader market, turnover stood at 1.43 billion units, valued at RM916.66 million. The market continued to reflect weak sentiment, driven by uncertainties in regional markets and subdued performance on Wall Street. $Bursa Technology (0005I.MY)$ sector also felt the effects of global market weaknesses, particularly after concerns arose about $NVIDIA (NVDA.US)$ AI chip flaw, though $Taiwan Semiconductor (TSM.US)$ addressed some of these concerns.
Decliners and Gainers
Significant decliners included $NESTLE (4707.MY)$, which tumbled by RM1.80 to RM102.60, $HEIM (3255.MY)$, losing 28 sen to RM23.10, and $HLFG (1082.MY)$, which dropped 26 sen to RM19.12. Conversely, $IHH (5225.MY)$ and $UTDPLT (2089.MY)$ led the gainers, rising by 12 sen and 10 sen, respectively. In the active counters, $BSLCORP (7221.MY)$ gained 0.5 sen to close at 3.5 sen, while $NICE (7139.MY)$ added one sen to 19.5 sen.
Sectoral Indices and Outlook
Sector-wise, $Bursa Finance Services (0010I.MY)$ shaved off 101.93 points to 19,414.63, while $Bursa Energy (0061I.MY)$ fell by 8.03 points to 853.76. $Bursa Industrial Products & Services (0002I.MY)$ eased by 0.97 points to 176.29, and $Bursa Plantation (0025I.MY)$ dropped by 13.95 points to 7,274.22. Analysts predict that the market may face further challenges as uncertainties surrounding the global economy and upcoming elections in the U.S. and Japan dampen investor sentiment. The local market may remain cautious, with immediate resistance at 1,660, while key support levels are seen at 1,625 and 1,600.
Significant decliners included $NESTLE (4707.MY)$, which tumbled by RM1.80 to RM102.60, $HEIM (3255.MY)$, losing 28 sen to RM23.10, and $HLFG (1082.MY)$, which dropped 26 sen to RM19.12. Conversely, $IHH (5225.MY)$ and $UTDPLT (2089.MY)$ led the gainers, rising by 12 sen and 10 sen, respectively. In the active counters, $BSLCORP (7221.MY)$ gained 0.5 sen to close at 3.5 sen, while $NICE (7139.MY)$ added one sen to 19.5 sen.
Sectoral Indices and Outlook
Sector-wise, $Bursa Finance Services (0010I.MY)$ shaved off 101.93 points to 19,414.63, while $Bursa Energy (0061I.MY)$ fell by 8.03 points to 853.76. $Bursa Industrial Products & Services (0002I.MY)$ eased by 0.97 points to 176.29, and $Bursa Plantation (0025I.MY)$ dropped by 13.95 points to 7,274.22. Analysts predict that the market may face further challenges as uncertainties surrounding the global economy and upcoming elections in the U.S. and Japan dampen investor sentiment. The local market may remain cautious, with immediate resistance at 1,660, while key support levels are seen at 1,625 and 1,600.
Post-Budget 2025 Sectoral Focus
Malacca Securities remains optimistic about the commodity sectors, particularly palm oil, given recent positive price trends in $Crude Palm Oil Futures(FEB5) (FCPOmain.MY)$. Following the recent tabling of Malaysia’s Budget 2025, investors are expected to continue focusing on $Bursa Construction (0003I.MY)$, $Bursa Property (0020I.MY)$, and renewable energy stocks, while a weaker ringgit $USD/MYR (USDMYR.FX)$ may drive interest in export-driven sectors like gloves and technology.
Malacca Securities remains optimistic about the commodity sectors, particularly palm oil, given recent positive price trends in $Crude Palm Oil Futures(FEB5) (FCPOmain.MY)$. Following the recent tabling of Malaysia’s Budget 2025, investors are expected to continue focusing on $Bursa Construction (0003I.MY)$, $Bursa Property (0020I.MY)$, and renewable energy stocks, while a weaker ringgit $USD/MYR (USDMYR.FX)$ may drive interest in export-driven sectors like gloves and technology.
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