21/12/2022 (The Malaysian Reserve) - Bursa Malaysia opened slightly lower on Wednesday despite gains on Wall Street overnight amid market jitters on interest rates following Bank of Japan’s (BoJ) move to tighten its monetary policy, said an analyst.

At 9.05 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 0.05 per cent, or 0.77 of-a-point to 1,466.55 from Tuesday’s closing of 1,467.32.

The market bellwether opened 0.31 of-a-point easier at 1,467.01.

On the broader market, advancers led decliners 126 versus 110, while 220 counters were unchanged, 1,808 untraded and 22 others suspended.

On the broader market, advancers led decliners 126 versus 110, while 220 counters were unchanged, 1,808 untraded and 22 others suspended.

Turnover stood at 106.11 million units worth RM40.13 million.

Malacca Securities Sdn Bhd said the FBM KLCI was in line with the regional markets’ slump after BoJ widened the allowable band for long-term yields to 50 basis points from 25 basis points yesterday.

“Nevertheless, we believe the key index is poised for a rebound amid reduced selldown from foreign investors as well as the rebound move on Wall Street overnight.

“Also, window dressing activities may kick in towards year-end,” the brokerage firm said in a note today.

Commodities-wise, Brent crude oil price traded below US$80, while the crude palm oil (CPO) price retreated below RM3,950 as a drop in exports from Malaysia stoked concern about weaker demand, it said.

It added the construction and building material sectors may gain traction as the Transport Ministry agreed to review five development projects with a total contract value of RM650 million.

“Meanwhile, we favour consumer, oil and gas (O&G) as well as the technology sector for the session – the latter could rebound in view of the slightly positive mood on Wall Street,” it said.

Among the heavyweights, Maybank gained one sen to RM8.71, Petronas Chemicals added six sen to RM8.24 and CIMB lost three sen to RM5.79, while Public Bank and TNB were flat at RM4.37 and RM9.18, respectively.

Of the actives, Nylex (M) rose 4.5 sen to 36.5 sen, Opcom improved three sen to 76 sen, YX Precious Metals ticked up 1.5 sen to 25 sen, while Industronics inched down by half-a-sen to 10.5 sen and Jaks Resources eased 1.5 sen to 26.5 sen.

On the index board, the FBM Emas Index advanced 0.26 of-a-point to 10,533.11, the FBM Emas Shariah Index was 5.38 points higher at 10,646.45, the FBM 70 Index strengthen 21.35 points to 12,884.56, and the FBM ACE Index increased 25.18 points to 5,499.51.

However, the FBMT 100 Index trimmed 0.38 of-a-point to 10,239.84.

Sector-wise, the Plantation Index lost 33.57 points to 6,788.01, and the Financial Services Index slid 17.90 points to 16,530.45.

The Energy Index inched up 3.32 points to 786.52 and the Industrial Products and Services Index recovered 0.39  of-a-point to 178.12.  — BERNAMA

https://themalaysianreserve.com/2022/12/21/bursa-malaysia-slightly-lower-in-early-trade/