Kuala lumpur: Bursa Malaysia experienced a decline in morning trading due to profit-taking in selected heavyweight stocks, primarily in the financial services, industrial products and services, and telecommunications and media sectors. Key stocks like Maybank, Press Metal Aluminium, and CelcomDigi saw decreases in their share prices, contributing to a 7.17-point reduction in the composite index.
According to BERNAMA News Agency, at 12.30 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was down by 8.94 points, or 0.55 percent, positioning it at 1,621.66 from Tuesday's close of 1,630.60. The index, having opened slightly higher at 1,631.46, fluctuated between 1,621.44 and 1,632.95 during the morning session. The broader market showcased a negative trend with 510 decliners outnumbering 425 gainers. There were 496 counters unchanged, 1,273 remained untraded, and seven were suspended, with a turnover of 2.23 billion units valued at RM1.10 billion.
In a research note, Hong Leong Investment Bank Bhd highlighted that the local market is absorbing the implications of the post-Sabah election scenario and the likelihood of a cabinet reshuffle by Prime Minister Datuk Seri Anwar Ibrahim to enhance Federal-Sabah relations. On the international front, the FBM KLCI might experience volatility as investors keep an eye on the upcoming Bank of Japan meeting, where a potential rate hike could influence the yen and bond yields, thereby impacting carry-trade risks and risk assets.
The bank further suggested that any declines should find robust support near the 1,590-1,600 range, driven by strong fundamentals, undemanding valuations, and favorable seasonality. This could potentially lead to a retest of the 1,643-1,659 resistance zone, following consecutive monthly declines in October and November.
Among other notable movements, Maxis decreased by nine sen to RM3.82, Telekom Malaysia fell by 14 sen to RM7.56, while Tenaga Nasional rose by 26 sen to RM13.00. On the most active list, Tanco increased by four sen to RM1.15 and D and O Green Technologies rose by seven sen to 83.5 sen.
Top gainers included Allianz Malaysia, which climbed 46 sen to RM20.26, while among the top losers, Nestle dropped by RM2.10 to RM118.10. On the index board, the FBM ACE Index and the FBM Mid 70 Index saw increases, whereas the FBM Emas Index, the FBMT 100 Index, and the FBM Emas Shariah Index experienced declines. Sector-wise, the Plantation Index saw a slight rise, while the Financial Services, Energy, and Industrial Products and Services indices witnessed decreases.