KUALA LUMPUR: Bursa Malaysia snapped its two-day winning streak to open lower today, as profit-taking activities kicked in after the key index closed at nearly four-month high yesterday.
At 9.06am, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 2.43 points to 1,688.57 from Tuesday’s close of 1,691.0.
At the opening, the index retreated 1.75 points to 1,689.25.
However, market breadth was positive with 117 gainers outpacing 90 losers, while 187 counters unchanged, 1,446 untraded and 19 others suspended.
Turnover stood at 151.14 million units worth RM45.89 million.
In a note today, Malacca Securities Sdn Bhd said FBM KLCI’s purple patch had seen it gaining nearly 8.0% over the past six weeks, which had left its valuations tethering on the expensive side, above its historical average forward ranges of 14 times-17 times.
“The toppish valuations, coupled with the recent gains, could limit the near term upsides,“ it said.
The research house cautioned that the key index was looking increasingly toppish, and early signs of an impending pullback have emerged.
This is despite the key index could still scale higher over the near term, in tandem with the overnight gains in most major global equity markets, it added.
Technically, Malacca Securities said, on the upside, the 1,700- level is the major resistance, followed by the 1,706-level, while the supports are at 1,690 and 1,683, respectively.
Among heavyweights, Maybank and Public Bank declined two sen each to RM8.96 and RM22.98, respectively, CIMB eased one sen to RM5.43 while IHH and Axiata were flat at RM5.84 and RM5.20, respectively.
Of the actives, Sumatec added one sen to two sen, Sapura Energy ticked up half-a-sen, Mestron was unchanged at 16 sen, while KNM was flat and its warrant was half-a-sen better at 13.5 sen.
BAT topped the losers list, erasing 38 sen to RM28.56, followed by Hong Leong Bank, decreasing 18 sen to RM18.96, Tenaga and MAHB shed eight sen each at RM14.14 and 8.55, respectively, and Petronas Chemicals was four sen lower at RM8.61.
The FBM Emas Index slid 10.70 points to 11,930.06, the FBMT 100 Index trimmed 11.61 points to 11,772.46 and the FBM Emas Shariah Index was 2.52 lower at 12,316.24.
The FBM 70, however, improved 6.79 points to 14,883.93 and the FBM Ace inched up 0.95 of-a-point to 4,523.84.
Sector-wise, the Financial Services Index contracted 33.30 points to 16,816.01 and the Industrial Products & Services Index slipped 0.23 of-a-point to 162.78.
But, the Plantation Index gained 9.85 points to 6,950.72.
Meanwhile, at the opening, LEAP market debutant MCOM rose three sen to 31 sen from the issue price of 28 sen, with 10,000 shares changing hands.
MCOM is a Malaysian Technology Development Corporation (MTDC) investee company that provides digital marketing solution. It specialises in mobile advertising platform and mobile payment solutions. – Bernama
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