Bursa opens lower in line with Wall Street

A trader talks to his mobile phone at a private stock exchange in Kuala Lumpur. (AFP pic)

KUALA LUMPUR: Bursa Malaysia opened lower as buying sentiment was hampered by the weaker overnight performance of Wall Street and as expectations of a more dovish Federal Reserve (Fed) soured.

At 9.10am, the key FTSE Bursa Malaysia KLCI (FBM KLCI) lost 15.88 points to 1,639.78 from Wednesday’s close of 1,655.66.

The index opened 21.25 points lower at 1,634.41.

In a note, PublicInvest Research said US markets weakened after the Fed decided to raise the interest rate by 25 basis points.

“The Fed did suggest that it was only penciling in two hikes in 2019 versus the three initially planned. However, it also spooked investors, with plans to continue reducing the size of its balance sheet at the current pace of US$50 billion per month.

“The Dow Jones Industrial Average gave declined 1.5%, while the S&P 500 and Nasdaq Composite tumbled 1.5% and 2.2%, respectively,” it added.

On the broader market on Bursa Malaysia, there were 202 losers and 75 gainers, with 123 counters unchanged, 1,506 untraded and 44 others suspended.

Volume stood at 214.69 million units valued at RM81.71 million.

Among heavyweights, Maybank lost five sen to RM9.28, Public Bank declined 22 sen to RM24.44, Petronas Chemicals lost seven sen to RM9.06 and Tenaga was flat at RM12.84.

Among actives, Bumi Armada and Hubline were unchanged at 15 sen and four sen respectively, while Sanichi gained half-a-sen to seven sen.

The FBM Emas Index decreased 96.18 points to 11,193.62, the FBMT 100 Index fell 92.59 points to 11,113.02, the FBM Emas Shariah Index lost 91.15 points to 11,068.18, the FBM Ace Index was 24.39 points lower at 4,222.68 and the FBM 70 shed 71.61 points to 12,720.81.

Sector-wise, the Industrial Products and Services Index was 0.78 of a point weaker at 164.19, the Financial Services Index fell 142.77 points to 17,046.44 and the Plantation Index gave up 91.91 points to 6,544.74.