Kuala lumpur: Bursa Malaysia lingered in negative territory for much of the day but managed to achieve slight gains, closing at an intraday high on Wednesday due to late buying interest in selected heavyweights, particularly in the industrial products and financial services sectors. At the 5 pm close, the FTSE Bursa Malaysia KLCI (FBM KLCI) edged up 0.68 of-a-point, or 0.05 percent, to 1,524.50, compared to Tuesday’s close of 1,523.82. The benchmark index opened slightly higher and hit a low during the morning session.
According to BERNAMA News Agency, the broader market remained negative, with more losers than gainers, and a significant number of counters unchanged or untraded. Turnover declined compared to the previous day, with fewer shares traded and a decrease in value.
UOB Kay Hian Wealth Advisors Sdn Bhd’s head of investment research, Mohd Sedek Jantan, stated that the market fluctuated within a narrow range, hovering around 1,522, before a sharp increase in the final minutes elevated it to the closing high. He highlighted that financial services counters were under pressure earlier due to the monetary policy divergence between Bank Negara Malaysia and the US Federal Reserve.
The recent policy changes, including a rate cut by Bank Negara Malaysia and the expected hold by the Federal Reserve, have increased the risk of capital outflows, affecting interest rate-sensitive sectors and leading foreign investors to adjust their positions in Malaysian financials.
Rakuten Trade Sdn Bhd’s equity research vice-president, Thong Pak Leng, anticipates that investors may gradually return to the market, driven by potential catalysts like regional policy easing and progress in trade negotiations.
Some heavyweights showed gains, while others declined. Petronas Chemicals, Public Bank, and Hong Leong Bank were among the gainers, whereas CIMB and Maybank experienced losses. Other notable movements included Tenaga Nasional’s decline and IHH Healthcare’s rise.
The market saw varying performances across sectors, with the Industrial Products and Services Index and Plantation Index gaining, while the Financial Services Index and Energy Index experienced declines. The Main Market volume and turnover were lower compared to the previous day, and the ACE Market volume saw a significant drop.
Overall, the trading activity across different sectors showed a mixed picture, with consumer products and services, industrial products, and technology being among the most active. The day concluded with a mixed outlook across various indices.