Bursa opens flat, trading ‘directionless’

Bursa Malaysia opened flat today and slipped 1.87 points to 1,636.53 from 1,638.40 at 5 pm on Friday.

KUALA LUMPUR:  Bursa Malaysia opened flat early Tuesday amid a cautious mood ahead of US Federal Reserve’s two-day policy meeting.

At 9.02 am, the key FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 1.87 points to 1,636.53 from 1,638.40 at 5 pm on Friday.

The barometer index opened 1.74 points weaker at 1,636.66.

Gainers were slightly above losers 64 to 50, with 163 counters unchanged, 1,591 untraded and 21 suspended.

Turnover stood at 110.39 million worth RM30.05 million.

On Monday, the FBM KLCI closed marginally in the red, despite strong gains made by Tenaga Nasional.

All the lower liners followed suit, led by the FBM ACE which dropped – 0.9%, the FBM Small Cap (-0.8%) and the FBM Fledgling (-0.5%) indices, while the majority of the broader market shares retreated.

The only gainers were the REITs and the utility sub-sectors, according to Malacca Securities Sdn Bhd.

“As for today’s trading on Bursa Malaysia, it appears directionless as market players wait for new leads to re-enter the market.

“As it is, market interest continues to be thin with most participants remaining on the sidelines that have seen traded volumes dwindling below the two billion shares a day mark of late, an indication of the increasingly insipid market conditions,” it said in a statement.

The research house said while the lack of market activities allowed key index stocks to find support, the lack of follow-through buying will continue to leave FBM KLCI listed stocks on the wayside as there is little prevailing selling pressure.

Hence, we see the broadly sideway trend would remain longer with the lower liners and broader market shares set for further consolidation on the back of the lack of leads that are also contributing to the thinning market participation.

Among heavyweights, Maybank was flat at RM8.96, Public Bank fell six sen to RM22.96 while Tenaga and Petronas Chemicals lost two sen each to RM12.72 and 8.30, respectively.

Steel pole manufacturer Mestron Holdings Bhd made its debut on Bursa Malaysia’s Ace Market today with a premium of four sen today, from its initial public offering of 16 sen per share with 82.26 million units traded.

Of the actively-traded stocks, Greatech gained half-a-sen to 90.5 sen, Compugates and MQ Technologies were flat at 2.5 sen and 2.5 sen respectively.

The FBM Emas Index erased 7.73 points to 11,530.95, the FBMT 100 Index decreased 8.04 points to 11,382.24 and the FBM Emas Shariah Index was 8.43 points weaker at 11,764.11.

The FBM 70 edged up 9.99 points to 14,279.30 and the FBM Ace shed rose 11.82 points to 4,361.56.

Sector-wise, the Financial Services Index was 14.22 points lower at 16,640.29 and the Industrial Products & Services Index dropped 0.15 of-a-point to 159.26, but the Plantation Index was 5.28 points better at 6,865.39.