Bursa plunges at opening in face of global weakness

Bursa plunges at opening in face of global weakness

KUALA LUMPUR,. Bursa Malaysia extended its losses at the opening today in line with Wall Street’s weaker performance overnight on concerns over global growth prospects.

At 9.20am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) reduced 41.45 points to 1,693.73 from 1,735.18 yesterday. The key index opened 35.42 points weaker at 1,699.76.

The US market plunged overnight following a sharp decline in technology counters amid concerns over rising interest rates. Similarly, European stocks suffered huge losses led by technology and mining counters.

On Bursa Malaysia’s scoreboard, losers trounced gainers by 765 to 40, with 110 unchanged, 957 untraded and 17 suspended.

Amid active trading, volume stood at 575.62 million units valued at RM323.04 million.

Maybank Investment Bank said the overnight carnage in the US markets from rising interest rate concerns as well as worries over global growth prospects would likely have spillover effects on the domestic market today.

“Technically, we expect the FBMKLCI to trade at 1,750-1,700. Downside supports are 1,720 and 1,700,” it said in a note today.

The key index closed broadly lower yesterday in reaction to potential new taxes in the upcoming 2019 budget on November 2, 2018, it noted.

Leading the losses in the heavyweights today was TNB, sliding 76 sen to RM13.92, while IHH Healthcare went down by 25 sen to RM5, Maxis trimmed 19 sen to RM5.38, Digi fell 18 sen to RM4.39, Public Bank shed 34 sen to RM24.64 and CIMB declined 14 sen to RM5.70.

Maybank was nine sen easier at RM9.42, Petronas Chemicals decreased 15 sen to RM9.21 and Hong Leong Bank slipped 24 sen to RM20.32.

For actives, Sumatec was flat at three sen, Sapura Energy eased 1.5 sen to 34.5 sen, Hibiscus Petroleum fell eight sen to RM1.17 while Borneo Oil and Orion IXL edged down half-a-sen to five sen and 10 sen respectively.

Gamuda rose five sen to RM2.12 after its joint venture company with MMC Corp Bhd, MMC Gamuda KVMRT (T) Sdn Bhd, announced that it remained committed to further discussions with the Finance Ministry towards reaching an agreeable cost reduction to the underground works of the Mass Rapid Transit Line 2.

The FBM 70 dropped 390.84 points to 13,479.43, the FBM Emas Shariah Index decreased 375.89 points to 11,678.01, and the FBM Ace Index eased 247.11 points to 4,780.35.

The FBM Emas Index was 309.44 points weaker at 11,706.58 and the FBMT 100 Index dwindled 294.47 points to 11,540.44.

Sectorwise, the Financial Services Index decelerated by 285.74 points to 17,201.92, the Industrial Products and Services Index was lower by 3.96 points at 169.31 while the Plantation Index declined 144.50 points to 7,304.77. — Bernama