KUALA LUMPUR, Jun 27 –The local bourse, Bursa Malaysia, opened weaker by 6.36 points at 1,627.69 today in line with regional markets which are still experiencing the snowball effect of Britain’s vote to exit the European Union (Brexit) with the key index-linked counters Maybank and TNB leading the decline.
At 9.12am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was 12.71 points easier at 1,621.34, against Friday’s close of 1,634.05. On the broader market, losers outnumbered gainers 275 to 44, while 130 counters were unchanged, 1,276 untraded and 26 others suspended.
Turnover stood at 107.22 million shares worth RM40.99 million. Maybank Investment Bank Research Bhd in a note said it expected global financial markets’ volatility to heighten amid the new uncertainties brought on by Brexit and headwinds from its knock-on effect.
“Major central banks’ reactions are the next to watch out for. The event has shifted our expectation for no US Fed fund rate hike this year, and we now see a strong likelihood of a domestic overnight policy rate/Statutory Reserve Requirement cut as early as July,” it said.
Dealers said the weaker performance on the local bourse was also in tandem with the weaker overnight performance of Wall Street and decline in global oil prices with the benchmark Brent down 1.3% to US$47.80 per barrel. Meanwhile, Kenanga Investment Bank Bhd said the local broader market sentiment is expected to be dampened further with growing uncertainty over the impact of Brexit amid the weaker crude oil prices and ringgit.
It in a note said the FBM KLCI is expected to trade with a downside bias within 1,600-1,640 this week. It said that the resistance levels are capped at 1,640 followed by 1,650, while supports are located at 1,620 and 1,600. The FBM Emas Index slid 86.64 points to 11,306.67, the FBMT 100 Index fell 87.76 points for 11,018.47 and the FBM Emas Syariah Index shed 100.86 points to 11,867.98.
The FBM 70 declined 106.59 points to 12,722.93 and the FBM Ace was 58.74 points lower at 5,084.29. Sector-wise, the Finance Index shrank 82.69 points to 13,992.22, the Plantation Index declined 4.03 points to 7,535.24 and the Industrial Index contracted 27.64 points to 3,043.96.
Among heavyweights, Maybank abated nine sen to RM8.11, TNB waned two sen to RM13.98, Public Bank erased four sen to RM19.16, IHH Healthcare slipped 18 sen to RM6.52 while Petronas Chemicals was flat at RM6.44. Of the actives, Vivocom and AirAsia X reduced one sen each to 23.5 sen and 35.5 sen respectively, LKL lost 2.5 sen to 27 sen and EA Holdings gave up half-a-sen to eight sen. The physical price of gold as at 9.30am stood at RM170.36 per gramme, up RM3.85 from RM166.51 at 5pm last Friday. — Bernama