KUALA LUMPUR (Aug 29): Bursa Malaysia opened lower on Monday (Aug 29) in risk-averse mode, taking its cue from the sharp drop on Wall Street last Friday, a dealer said.
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At 9.05am, the benchmark FBM KLCI had fallen by 16.29 points to 1,484.0, from last Friday’s closing at 1,500.29.
The benchmark index opened 13.77 points lower at 1,486.52.
On the broader market, losers surpassed gainers 494 to 47, while 152 counters were unchanged, 1,666 untraded, and 81 others suspended.
Turnover stood at 200.45 million units worth RM105.12 million.
In a note, Malacca Securities Sdn Bhd said the local bourse may be headed for a widespread sell-off, following the sharp decline on Wall Street overnight after US Federal Reserve (Fed) chair Jerome Powell’s hawkish remarks last Friday.
“We believe the US Fed’s interest rate decision going forward will continue to fuel market volatility. On the local front, investors may watch for Malaysia’s inflation rate data at noon,” it said.
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On commodities, the brokerage firm noted that the crude oil price had climbed above US$100 (RM448.79), while crude palm oil (CPO) traded at above RM4,150.
As for sectors in focus, it said investors might avoid technology stocks amid the resurgence of concerns over implications of higher interest rates for global markets.
However, they may favour defensive sectors such as consumer stocks, real estate investment trusts, building materials, utilities and banking to prepare for a volatile period.
Meanwhile, Bursa heavyweights Malayan Banking Bhd (Maybank) shed three sen to RM8.88 and Public Bank Bhd too lost three sen to RM4.60, Petronas Chemicals Group Bhd slid one sen to RM8.68, CIMB Group Holdings Bhd fell 11 sen to RM5.35 and IHH Healthcare Bhd slipped two sen to RM6.35.
Of the actives, Dagang NeXchange Bhd (DNeX) was three sen lower at 84.5 sen, Serba Dinamik Holdings Bhd’s warrant eased half a sen to 1.5 sen and Agmo Holdings Bhd declined two sen to 87.5 sen, while Borneo Oil Bhd was flat at 2.5 sen and VinVest Capital Holdings Bhd too was flat at 19.5 sen.
On the index board, the FBM Emas Index dropped 132.52 points to 10,516.32, the FBMT 100 Index lost 123.74 points to 10,269.62, the FBM 70 tumbled 195.69 points to 12,550.46, the FBM ACE went down 123.37 points to 4,833.0 and the FBM Emas Shariah Index dipped 161.04 points to 10,598.93.
Sector-wise, the Plantation Index was 65.90 points lower at 6,988.44, the Industrial Products and Services Index shed 2.57 points to 179.61, the Financial Services Index decreased 117.62 points to 16,606.07, and the Energy Index went down by 14.24 points to 713.20.-BERNAMA