Volatile trading leads Bursa to end lower, volume climbs further

An analyst said the market ended on a lower note across the board due mainly to the war waged between Washington and Beijing, which led to a decline in bourses across Asia, especially in Hong Kong and China. — Bernama pic
An analyst said the market ended on a lower note across the board due mainly to the war waged between Washington and Beijing, which led to a decline in bourses across Asia, especially in Hong Kong and China. — Bernama pic

KUALA LUMPUR, Aug 7 — The intensifying US-China tech war led Bursa Malaysia to experience volatile trading and finish on a lower note today.

At the close, technology related stocks tracked the Nasdaq downtrend following US President Donald Trump’s signing executive orders prohibiting US residents from doing any business with WeChat, TikTok or the apps’ Chinese owners as Washington sought to curb China’s power in global technology.

The technology index was down 3.33 per cent with Malaysian Pacific Industries leading the losers with a 2.40 per cent decline to RM14.62.

Meanwhile, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.65 per cent to 1,578.14 from yesterday’s close of 1,588.57 as a selldown of healthcare heavyweights Hartalega and Top Glove due to profit taking dragged down the benchmark index by 6.10 points.

The key index, which opened higher at 1,590.54, moved between 1,578.14 and 1,591.08 during the day.

Trading volume broke another record high, driven by heavy trading of lower liners, especially technology-related counters.

Volume surged to 26.65 billion shares worth RM9.04 billion from yesterday’s 16.68 billion shares worth RM8.56 billion.

Market breadth was negative, with losers thumping gainers 794 to 435, while 316 counters were unchanged, 434 untraded and 25 others suspended.

An analyst said the market ended on a lower note across the board due mainly to the war waged between Washington and Beijing, which led to a decline in bourses across Asia, especially in Hong Kong and China.

Hong Kong’s Hang Seng Index declined 1.6 per cent to 24,531.62 while the Shanghai composite index was down 0.96 per cent at 3,354.03.

“As the tech war continues to drive the two economies apart, we foresee that the local bourse will continue to be under pressure leading to risk-off sentiment, tracking global movements,” she said.

Meanwhile, Rakuten Trade head of research Kenny Yee said the heavy volume transacted during the week reflected the local bourse’s vibrancy.

“This is a good sign for the local equity market, as it mirrors the high interest among foreign investors as well,” he said.

Twenty-one of the 30 FBM KLCI constituent stocks recorded a selldown, including Hartalega (down 66 sen to RM19.14), Top Glove (26 sen lower at RM28.14), Public Bank (22 sen drop to RM16.76) and Nestle (down RM3.00 to RM140.10).

Of the most actives, Borneo Oil added 2.5 sen to 7.5 sen, while Trive and Eduspec rose one sen each to two sen and 2.5 sen, respectively.

Among the top losers, Nestle eased RM3.00 to RM14.10, Adventa lost RM1.05 to RM3.66 and F&N fell 90 sen to RM32.08.

Of the top gainers, PPB increased 34 sen to RM19.24 while Oversea Enterprise and KSSC each gained 30 sen each to 61.5 sen and 79 sen, respectively.

On the index board, the FBM Emas Index dived 110.26 points at 11,366.37, the FBM Emas Shariah Index eased 149.05 points to 13,497.55 and the FBMT 100 Index weakened 101.17 points to 11,178.80.

The FBM 70 dropped 240.70 points to 14,810.47 and the FBM ACE sank 206.66 points to 10,316.51.

Sector-wise, the Industrial Products and Services Index decreased 0.78 point to 140.97, the Financial Services Index fell 77.11 points to 12,916.09 and the Plantation Index declined 108.45 points to 6,963.75.

Main Market volume leapt to 14.33 billion shares worth RM5.84 billion compared with 9.0 billion shares valued at RM5.35 billion yesterday.

Warrants turnover narrowed to 649.49 million units valued at RM248.86 million from 759.05 million units valued at RM242.51 million previously.

Volume on the ACE Market expanded to 11.66 billion shares worth RM2.95 billion versus 6.91 billion shares valued at RM2.96 billion yesterday.

Consumer products and services accounted for 2.84 billion shares traded on the Main Market, industrial products and services (5.23 billion), construction (429.98 million), technology (2.40 billion), SPAC (nil), financial services (54.30 million), property (2.08 billion), plantations (54.90 million), REITs (8.69 million), closed/fund (88,000), energy (558.69 million), healthcare (105.58 million), telecommunications and media (83.45 million), transportation and logistics (435.14 million), and utilities (45.32 million). — Bernama

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