KUALA LUMPUR, Aug 1 ― Bursa Malaysia was lower across the board in early trade today, in sync with regional peers, as persistent worry over a trade war and the US interest rate cut failed to impress global investors, dealers said.

At 9.05am, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 4.61 points to 1,630.26 against 1,634.87 recorded yesterday.

The barometer index was opened 6.07 points lower at 1,628.8.

Market breadth remained negative as losers overpowered winners on a ratio of 193-to-659 stocks, while 179 counters were unchanged, 1,452 untraded and 28 others suspended.

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Turnover stood at 1.29 billion units worth RM49.39 million.

As expected, the US Federal Reserve yesterday said it would cut its benchmark interest rate by 25 basis points, the first time in 11 years to extend the economic boom and boost weak inflation amid the protracted US-China trade war.

Nevertheless, Chairman Jerome Powell's remark that the central bank would be more ‘patience’ for a series of rate cuts by the end of the year had put investors on cautious mode.

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Meanwhile, the US and China wrapped up their trade talks in Shanghai without any deal, despite negotiators from both economic powerhouses indicated the talks as “constructive.

Malacca Securities Sdn Bhd, in a note, said the local bourse is expected to see continuous downward pressure.

Bursa Malaysia continues to grapple with fresh uncertainties over the prolonged US-Sino trade war and the less dovish stance from the US Federal Reserve with global equities reacting negatively to the aforementioned event overnight.

“The ongoing market uncertainties are expected to leave the key index drifting lower amid the lack of fresh buying interest, whilst the prospect of insipid earnings growth return to the forefront ahead of a barrage of corporate earnings this month.

“With the 1,637 immediate support level gave way yesterday, the next support levels are now pegged at the 1,630 level, followed by 1,616 level,” the research firm said.

On the flipside, Malacca Securities said bargain hunting activities from the recent pullback would see gains capping towards the 1,650 and 1,660 levels respectively.

Selling activities on the local bourse spillover to the lower liners as profit-taking activities escalated.

“In view of the fresh global trade uncertainties, we reckon the recent weakness will remain unabated.

“Any reprieve is expected to be temporary with little buying interest from retail players due to the renewed weak market sentiments,” it explained.

Among heavyweights, Maybank added one sen to RM8.66 while Tenaga rose eight sen to RM13.90.

Public Bank lost 12 sen to RM21.78, Petronas Chemicals shed three sen to RM7.46, IHH Healthcare eased four sen to RM5.70, and CIMB slipped two sen to RM5.06.

Actively traded stocks, Zelan gained two sen to 10.5 sen, Mlabs was flat at four sen while Ucrest trimmed 3.5 sen to 19 sen.

Newly debutant on ACE Market, Tashin Holdings stood at 51.5 sen, a 6.5 sen lower than the initial public offering price of 58 sen. A total of 18.91 million shares were transacted.

On the scoreboard, the FBM Emas Index fell 34.75 points to 11,554.92, the FBM Ace shed 28.63 points to 4,739.16, the FBM 70 edged down 58.65 points to 14,435.69, the FBMT 100 Index contracted 35.46 points to 11,378.39, and the FBM Emas Shariah Index shed 28.32 points to 11,974.62.

Sector-wise, the Plantation Index decreased 38.59 points to 6,694.7, the Financial Services Index gave up 67.76 points for 15,991.24 but the Industrial Products & Services Index added 0.46 of-a-point to 154.78. ― Bernama