KUALA LUMPUR, June 27 — Bursa Malaysia extended earlier losses to end lower for the second consecutive day as Malaysia’s Producer Price Index (PPI) contracted 4.6 per cent year-on-year (y-o-y) in May 2023, which is faster than expected as compared with a 3.0 per cent drop in April, said an analyst.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 3.14 points or 0.23 per cent to 1,386.74 from 1,389.88 at yesterday’s close.

The key index opened 0.99 of a point better at 1,390.87 this morning and moved between 1,385.30 and 1,393.38 throughout the session.

The broader market was also negative as decliners outpaced gainers 425 to 360, while 426 counters were unchanged, 1,124 untraded and 40 others suspended.

Turnover increased marginally to 2.59 billion units worth RM1.51 billion versus 2.56 billion units worth RM1.41 billion yesterday.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said key regional indices ended mostly higher, particularly in China and Hong Kong, after Chinese Premier Li Qiang said the second quarter would witness greater economic growth compared to the first quarter.

Li also said that Beijing would implement more impactful policies to boost domestic demand and promote market openness.

Regionally, Hong Kong’s Hang Seng Index added 1.88 per cent to 19,148.13, China’s SSE Composite Index rose 1.23 per cent to 3,189.44, and China’s Shenzhen Index perked 0.97 per cent to 10,978.08.

Thong said investor sentiment saw a positive shift in several countries within the region on the potential positive prospects in China.

"Back home, the valuation of FBM KLCI remains attractive at its current level, trading at the calendar year of 2023 (CY 2023) forward price-earnings ratio of around 13 times as compared with its five-year average of more than 17 times.

"Having said that, we anticipate that sentiment will remain cautious, influenced by the rising global volatility while selling pressure from foreign funds as a significant challenge,” he told Bernama.

Thong said he anticipated the benchmark index to remain in its sideways pattern, slightly biased towards positive, ranging between 1,385-1,400 for the rest of the week.

Meanwhile, SPI Asset Management managing director Stephen Innes said local markets were trading a bit softer but trading flatter than anything else as a bounce higher in commodity constituents after China’s confirmation of its economic growth target in 2023 was getting offset by global rate hike pressure.

"I think the Bursa Malaysia could remain range-bound ahead of Friday’s key United States (US) Personal Consumption Expenditure Price Index inflation print that could give investors clues on the future path of rate hikes from the US Federal Reserve Board.

"Locally, investors continue to hope for more policy stimulus out of China,” he added.

On the local bourse, heavyweights Maybank and Tenaga Nasional pushed up one sen each to RM8.71 and RM9.19, Public Bank decreased one sen to RM3.85, CIMB went down four sen to RM5.15, and IHH Healthcare lessened seven sen to RM5.82.

Of the actives, Sarawak Consolidated and Jade Marvel ticked up one sen each to 44.5 sen and 20.5 sen, while Fitters Diversified, Widad, and Sapura Energy were flat at four sen, 42 sen, and 3.5 sen, respectively.

On the index board, the FBM Emas Index dipped 15.39 points to 10,194.31, the FBMT 100 Index trimmed 16.18 points to 9,898.06, the FBM Emas Shariah Index slid 15.60 points to 10,483.67, the FBM 70 Index put on 4.42 points to 13,382.42, and the FBM ACE Index was 14.73 points firmer to 5,045.03.

Sector-wise, the Financial Services Index shed 35.23 points to 15,386.32, and the Industrial Products and Services Index eased 0.29 of-a-point to 158.27, but the Energy Index edged up by 0.21 of-a-point to 781.32, and the Plantation Index perked 29.61 points to 6,748.42.

The Main Market volume expanded to 1.80 billion units valued at RM1.26 billion from 1.72 billion units valued at RM1.16 billion yesterday.

Warrants turnover dwindled to 218.45 million units worth RM38.82 million against 219.46 million units worth RM31.36 million previously.

The ACE Market volume dropped to 534.07 million shares valued at RM215.58 million from 624.68 million shares valued at RM216.62 million yesterday.

Consumer products and services counters accounted for 334.40 million shares traded on the Main Market, industrial products and services (633.26 million); construction (67.08 million); technology (143.81 million); SPAC (nil); financial services (54.00 million); property (214.88 million); plantation (34.77 million); REITs (6.70 million), closed/fund (500); energy (162.90 million); healthcare (43.37 million); telecommunications and media (37.73 million); transportation and logistics (21.96 million); and utilities (46.25 million). — Bernama