KUALA LUMPUR, June 5 — Bursa Malaysia opened lower today tracking the mixed  overnight performance of Wall Street along with the European Central Bank (ECB) announcement earlier today that it is pumping additional €600 billion (US$676 billion) to further stimulate its economy, said dealers.

At 9.07am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) eased 4.32 points to 1,557.52 from yesterday’s close of 1,561.84.

The index opened 0.67 of-a-point weaker at 1,561.17.

On the broader market, however, gainers surpassed decliners 263 versus 176, while 260 counters were unchanged, 1,203 untraded and 19 others suspended.

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Turnover stood at 566.55 million units worth RM366.28 million.

In a note, Public Investment Bank Bhd said the Dow Jones Industrial Average ended less than 0.1 per cent higher at 26,281.82, while the S&P 500 fell 0.3 per cent, to close at 3,112.35.

Wall Street’s subdued overnight performance also sent regional indices to trade mostly lower.

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Meanwhile, AmBank Research in a note said the ECB increased its Pandemic Emergency Purchase programme by a further €600 billion (US$676 billion) which amounts to a total announced monetary stimulus to €1.35 trillion (US$1.52 trillion) while leaving key interest rates unchanged. 

“What can be seen here is that the ECB, just like many others, is not in any better position in getting the grasp of the full depth and breadth of the economic crisis and the pace of the recovery.

“In our view, the announcement, however, details what the ECB will do to support the economy.

“The policy support is likely to keep markets happy, particularly as some of the economic data is improving as lockdowns are being relaxed, and it also means that with the inflation forecast clearly below 2.0 per cent in 2022, the more monetary stimulus should not be excluded as we move ahead,” said the research firm.  

On other notable announcements back home, Kenanga Research said following the semi-annual review of the FTSE Bursa Malaysia Index Series yesterday, Telekom Malaysia Bhd and KLCC Property Holdings Bhd (KLCC), will replace Malaysia Airports Holdings Bhd and AMMB Holdings Bhd in the FBM KLCI as expected.

Having passed the liquidity test in this review period, KLCC is re-admitted into the Series after an 18-month long absence.

“Hence, it is back not just to the FBM KLCI but it also returns to, among others, the FBM Emas Shariah Index,” said the research house.

On the contrary, UMW Holdings Bhd was excluded from all the index series, having failed the liquidity test, adding that all constituent changes are to take effect at the start of business on Monday, June 22, 2020.

Among the heavyweights, Maybank eased 11 sen to RM8.08, Tenaga declined 14 sen to RM11.88, Public Bank decreased 24 sen to RM17.26, Petronas Chemicals trimmed 12 sen to RM6.85 and IHH Healthcare receded one sen to RM5.58.

On the index board, the FBM Emas Index was 5.71 points lower at 10,965.06, the FBMT 100 Index eased 10.42 points to 10,820.16, while the FBM Emas Shariah Index put on 68.57 points for 12,373.00, the FBM 70 gained 67.05 points to 13,507.02 and the FBM ACE added 26.4 points to 5,948.3.

Sector-wise, the Industrial Products and Services Index fell 1.25 points to 140.5, the Financial Services Index receded 149.49 points to 13,734.21 while the Plantation Index increased 3.69 points to 6,831.57. — Bernama