KUALA LUMPUR, May 2 — Bursa Malaysia closed easier today with the benchmark index easing 0.61 per cent on heavy selling in selected blue-chips, especially among plantation and banking stocks.

This was said to be due to concerns over news that India has raised the base import price of crude palm oil (CPO), as well as the US Federal Reserve’s decision to hold interest rates steady, said a dealer.

At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) shaved 10.05 points to 1,632.24 from Tuesday’s close of 1,642.29.

After opening 0.17 of-a-point better at 1,642.46, the local index ranged between 1,631.27 and 1,644.35 throughout the session. 

The market was closed yesterday for the Labour Day holiday.

Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said the heavy sell-off on Bursa Malaysia might also had been affected by the implementation of the two-day settlement cycle (T+2) for the trading of securities which reduced buying interest among retail investors.

"Those who bought the shares earlier before April 29, need to sell them today as the T+2 scheme settled today (May 2),” he told Bernama.

The T+2 scheme, which aimed at shortening the settlement cycle, would reduce counterparty risk, improve operational efficiency, strengthen market’s competitiveness and increase global harmonisation.

Meanwhile, Pong said India’s move to increase the base import price of CPO by US$5 to US$545 (RM2,254) per tonne gave impact towards the plantation counters where most of the palm oil companies saw reduction in their share prices.

Among plantations, United Plantation was seen as the top loser, declining 50 sen to RM26.20. IOI Corporation deducted five sen to RM4.46, Sime Darby Plantation eased eight sen to RM5.08 and KL Kepong erased four sen to RM24.70.

For banks, Public Bank fell two sen to RM22.48, CIMB Group slid four sen to RM5.23, RHB Bank decreased one sen to RM5.95 and Hong Leong Financial Group declined 20 sen to RM19.02.

Among the heavyweights, Maybank and TNB were flat at RM9.25 and RM12.28, while Petronas Chemicals eased five sen to RM8.95.

Of the actively-traded stocks, Lambo Group was half-a-sen better at 10 sen, Ekovest fell 5.5 sen to 82.5 sen and Bumi Armada reduced 1.5 sen to 22.0 sen.

The FBM Emas Index was 78.19 points weaker at 11,573.65, the FBMT 100 decreased 74.31 points to 11,394.94 and the FBM 70 slumped 111.12 points to 14,467.69.

 The FBM Emas Shariah Index was 111.67 points easier at 11,725.38 and the FBM Ace Index fell 38.57 points to 4,604.13.

Sector-wise, the Financial Services Index down 47.98 points to 16,914.72, the Plantation Index eased 74.74 points to 7,205.93, while the Industrial Products and Services Index erased 0.85 of-a-point to 169.08.

Market breadth was negative with losers outnumbering gainers 669 to 225, with 348 counters unchanged, 645 untraded and 18 others suspended.

Turnover was slightly higher to 2.68 billion shares worth RM1.95 billion from 2.36 billion shares worth RM2.25 billion on Tuesday.

Main Market volume rose to 1.91 billion shares valued at RM1.80 billion against 1.73 billion shares valued at RM2.11 billion previously.

Warrants turnover increased to 347.54 million units worth RM86.49 million from 309.16 million units worth RM74.44 million on Tuesday.

Volume on the ACE Market improved to 414.73 million shares valued at RM62.67 million versus 323.97 million shares valued at RM66.48 million previously.

Consumer products and services accounted for 237.04 million shares traded on the Main Market, industrial products and services (357.09 million), construction (324.20 million), technology (108.67 million), SPAC (nil), financial services (40.68 million), property (177.61 million), plantation (25.29 million), REITs (8.45 million), closed/fund (7,000), energy (481.02 million), healthcare (30.66 million), telecommunications and media (43.46 million), transportation and logistics (40.87 million), and utilities (31.64 million). — Bernama