Bursa opens marginally higher but turns lower thereafter

Bursa opens marginally higher but turns lower thereafter
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KUALA LUMPUR (Oct 22): Bursa Malaysia opened marginally higher on Friday (Oct 22) but turned lower thereafter, extending Thursday's profit taking for almost all index-linked counters, amid a lack of positive sentiment in the market, analysts said.

At 9.06am, the benchmark FBM KLCI had dropped 5.90 points to 1,585.72 from Thursday’s close at 1,591.62. It opened 0.10 point higher at 1,591.72.

Market breadth was negative with losers outpacing gainers 263 to 119, while 274 counters were unchanged, 1,624 untraded and six others suspended.

Turnover amounted to 209.11 million units worth RM116.33 million.

Malacca Securities Sdn Bhd, in a research note, said although the market is expected to remain negative on Friday, investors or traders may focus on sectors that are related to the upcoming Budget 2022, which could provide clarity of the economic recovery going forward.

Commodity-wise, it said crude palm oil (CPO) and crude oil prices declined after a significant extended rally for both commodities over the past weeks.

“Investors may continue collecting laggard counters in the recovery-themed sectors, such as consumer and banking, as well as construction and property stocks.

“Meanwhile, the technology counter may track Nasdaq’s gains overnight,” it said in a research note.

Technically, the brokerage firm said the KLCI had pulled back below the psychological 1,600 level as the key index took a breather after three winning sessions.

“Technical indicators remain positive, with resistance pegged along 1,600-1,620, while support is located at 1,580,” it added.

Among the heavyweights, Malayan Banking Bhd (Maybank) dropped six sen to RM8.14, Public Bank Bhd was flat at RM4.23, Petronas Chemicals Group Bhd (PetChem) and Tenaga Nasional Bhd (TNB) added two sen each to RM8.83 and RM9.77 respectively, while IHH Healthcare Bhd eased four sen to RM6.56. 

Of the actives, Serba Dinamik Holdings Bhd eased 1.5 sen to 35.5 sen, Tanco Holdings Bhd added half a sen to 26 sen and Daya Materials Bhd was flat at 1.5 sen.

On the index board, the FBM Emas Index declined 36.58 points to 11,686.77, the FBMT 100 Index shed 37.64 points to 11,323.98, the FBM Emas Shariah Index went down 35.57 points to 12,750.04, the FBM 70 was 33.62 points weaker at 15,359.29 and the FBM ACE narrowed by 30.16 points to 7,168.78.   

Sector-wise, the Industrial Products and Services Index slipped 0.08 of a point to 210.98, the Plantation Index eased 35.59 points to 7,001.91 and the Financial Services Index reduced 82.98 points to 15,703.39.