September 1, 2021

After Rising 7 Days In A Row, Is The Bullish Trend Of The Exchange Is Over?

 Bursa Malaysia opened higher in today's trading session but then declined after being driven by profit taking activity on selected heavyweights.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index opened 2.05 points higher at 1,603.43 from 1,601.32 at the close on Monday.

But as of 10.00am, the FBM KLCI index had declined 9.40 points to 1,591.98.

On the broader market, losers outnumbered gainers by 262 to 233, while 374 counters were unchanged, 1,349 untraded and six others suspended.

Turnover stood at 660.88 million units worth RM310.27 million.

Malacca Securities said the key index exhibited a 7-day gain in a row, so it’s no surprise it experienced a decline before more sectors began to show significant recovery.

According to him, the reopening of business activities will be a good sign for the deck economy as more states move to Phases 3 and 4 of the National Recovery Plan.

The surge above the 1,600 key level on Monday was driven by strong buying interest from high -weighted foreign funds and driven by positive signals from regional markets and Wall Street.

"The increase in vaccination rates in Malaysia has also driven the increase and we hope it will be a strong impetus for the recovery sector such as banking and those related to consumers and building materials," he added.

Of the heavyweights, Maybank was flat at RM8.40, Public Bank declined 5.0 sen to RM4.13 and TNB fell 8.0 sen to RM10.38.

Meanwhile, Petronas Chemicals rose 10 sen to RM8.40 and IHH Healthcare declined 10 sen to RM6.30.

For active stocks, Borneo Oil and Vortex Consolidated rose half-a-sen to 3.5 sen and 8.5 sen, respectively, Bintai Kinden added 2.5 sen to 50.5 sen and PA Resources rose 3.5 sen to 44.5 sen.

On the index board, the FBMT 100 Index jumped 37.65 points to 11,305.26, the FBM 70 fell 9.49 points to 15.013.97 and the FBM ACE declined 10.85 points to 7.234.05.

The FBM Emas Index declined 34.01 points to 11,593.86 and the FBM Emas Shariah Index declined 48.64 points to 12,701.82.

By sector, the Financial Services Index rose 18.27 points to 15,575.54, the Industrial Products and Services Index rose 1.06 points to 199.44 and the Plantation Index fell 28.12 points to 6,723.13.