Bursa Malaysia erases early gains to end lower
KUALA LUMPUR: Bursa Malaysia gave up early gains to close lower today, as profit-taking emerged in selected financial services counters, amid cautious sentiment on the regional market, an analyst said.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 0.46 per cent, or 7.16 points, to 1,542.74 from yesterday's close of 1,549.90.
Maybank and CIMB were the top two contributors to the benchmark index's decline, falling 12 sen to RM9.88 and 8.0 sen to RM6.87, respectively, with a combined negative contribution of 3.55 points.
The market bellwether opened 0.31 of-a-point higher at 1,550.21, and moved between 1,541.45 and 1,551.59 throughout the day.
In the broader market, however, gainers outpaced losers 514 to 407, while 479 counters were unchanged, 951 untraded, and nine suspended.
Turnover swelled to 3.36 billion units worth RM2.71 billion compared to 2.84 billion units worth RM2.43 recorded on Wednesday.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said the local benchmark index was unable to extend the momentum from yesterday's gains as sentiment turned cautious despite a broadly supportive global backdrop.
"As anticipated, the US Federal Reserve (Fed) maintained its policy rate at 4.25–4.5 per cent, while flagging heightened uncertainty and signalling two-sided risks.
"In addition to the Fed's Federal Open Market Committee (FOMC) decision, Bank Negara Malaysia's Monetary Policy Committee (MPC) meeting also concluded today with a decision to keep the Overnight Policy Rate (OPR) unchanged," he told Bernama.
He said this domestic policy stability appeared to provide a lift to the utilities sector, which led the gainers today.
"Despite the broader market pullback, we maintain a constructive view that the FBM KLCI's recent relief rally remains intact, with potential to test the 1,555 level—last seen on March 4, the day US President Donald Trump announced his initial wave of tariffs on imports.
"This level carries historical significance and reflects the index's sensitivity to global trade policy developments," he said.
Among other heavyweights, Public Bank shed 2.0 sen to RM4.45, CelcomDigi declined 4.0 sen to RM3.87, Hong Leong Bank dipped 6.0 sen to RM19.94, while Tenaga Nasional gained 14 sen to RM14.30 and IHH Healthcare added 1.0 sen to RM7.01.
For active stocks, Nationgate increased 9.0 sen to RMRM1.58, Tanco rose 1.5 sen to 91.5 sen, Velesto and MYEG earned half-a-sen each to 16 sen and 90 sen, respectively, while Fibromat slid 5.5 sen to 49.5 sen.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Climate-sceptic policies 'imperil' aviation decarbonisation by 2050: IATA
NEW DELHI (AFP): Climate-sceptic policies will "imperil" the success of decarbonisation of the aviation sector to which airlines have committed by 2050, the International Air Transport Association (IATA) said on Sunday. The emergence of leaders favouring fossil fuels, such as US President Donald Trump, and recent regulatory rollbacks, are "obviously a setback... it does imperil success on the 2050 horizon", Marie Owens Thomsen, IATA's senior vice president sustainability, told reporters. "But I don't think it's going to halt or reverse progress. I think it will just slow progress," she said at the IATA annual industry conference in India. UN aviation agency members, from the International Civil Aviation Organization (ICAO), have set the year 2050 as their goal for achieving net-zero carbon emissions for air travel -- an industry often criticised for its outsized role in climate change. The air transportation industry has faced growing pressure to deal with its contribution to the climate crisis. Currently responsible for 2.5 percent to three percent of global CO2 emissions, the sector's switch to renewable fuels is proving difficult, even if the aeronautics industry and energy companies have been seeking progress. To achieve net-zero emissions, airlines rely on non-fossil sources known as Sustainable Aviation Fuel (SAF). IATA members preceded ICAO by a year, at their 2021 General Assembly, in setting this ambitious goal, which requires colossal investments. But SAF fuels are still three to four times more expensive than petroleum-based jet fuel. Washington's new Republican administration is also however supporting the development of fossil fuels, in contrast to the preceding Democratic one of Joe Biden. - AFP
The Sun
7 hours ago
- The Sun
UK boosts weapons production capacity in new defence strategy
LONDON: Britain will invest £1.5 billion ($2 billion) in new weapons factories to ramp up defence production capacity, the government said on Saturday, ahead of a major review of its armed forces and military strategy. The Strategic Defence Review, due to be published Monday, will assess the threats facing the UK amid Russia's ongoing war in Ukraine and pressure from US President Donald Trump for NATO allies to bolster their own defences. In February, UK Prime Minister Keir Starmer committed to increasing defence spending to 2.5 percent of GDP by 2027, up from its current 2.3 percent. The Labour leader also aimed to hike spending to three percent by the next parliament, due around 2029. The review will recommend 'creating an 'always on' munitions production capacity in the UK' which would allow weapons production to be 'scaled up at speed if needed'. It also urges the government to 'lay the industrial foundations for an uplift in munitions stockpiles to meet the demand of high-tempo warfare', the Ministry of Defence said in a statement. The government has said it would procure 7,000 domestically built long-rang weapons and build 'at least six munitions and energetics factories'. This investment -- which will see £6 billion spent on munitions this Parliamentary term -- will also create and support 1,800 jobs, the ministry said. 'The hard-fought lessons from Putin's illegal invasion of Ukraine show a military is only as strong as the industry that stands behind them,' Defence Secretary John Healey said. 'We are strengthening the UK's industrial base to better deter our adversaries and make the UK secure at home and strong abroad.' Healey also told The Times newspaper that Britain would spend three percent of GDP on defence during the next parliament. The government has said it would cut the UK's overseas aid budget to help fund the spending. The defence review, led by former NATO secretary general George Robertson, warns that Britain is entering 'a new era of threat' as drones and artificial intelligence transform modern warfare, The Guardian newspaper reported Saturday. The document will warn of the 'immediate and pressing' danger posed by Russia, as well as focusing on China, Iran and North Korea. Robertson has described the four countries as a 'deadly quartet' which were 'increasingly working together'. The government this week pledged over £1 billion for improving battlefield technology by bolstering AI and cybersecurity. In that announcement Healey warned that 'ways of warfare are rapidly changing' and that the UK was 'facing daily cyber-attacks on this new frontline'.
Malay Mail
8 hours ago
- Malay Mail
Oil slides below US$65 bringing inflation relief — and trouble for producers
LONDON, June 1 — US President Donald Trump's tariffs, his call to 'drill baby drill' and especially a decision by Opec+ to hike crude output quotas have oil prices trading at lows not seen since the Covid pandemic. That is good news for consumers but not so much for producers, analysts say. A barrel of Brent North Sea crude, the international benchmark, stands below US$65 (RM276), a far cry from the more than the US$120 reached in 2022 following the invasion of Ukraine by major oil producer Russia. Lower inflation The fall in oil prices has contributed to a global slowdown for inflation, while also boosting growth in countries reliant on importing crude, such as much of Europe. The US consumer price index, for example, was down 11.8 per cent year-on-year in April. Cheaper crude 'increases the level of disposable income' consumers have to be spending on 'discretionary items' such as leisure and tourism, said Pushpin Singh, an economist at British research group Cebr. The price of Brent has fallen by more than US$10 compared with a year ago, reducing the cost of various fuel types derived directly from oil. This is helping to push down transportation and manufacturing costs that may, in the medium term, help further cut prices of consumer goods, Singh told AFP. But he noted that while the drop in crude prices is partly a consequence of Trump's trade policies, the net effect on inflation remains difficult to predict amid threatened surges to other input costs, such as metals. At the same time, 'cheaper oil can make renewable energy sources less competitive, potentially slowing investment in green technologies', Singh added. Oil producers As prices retreat however the undisputed losers are oil-producing countries, 'especially high-cost producers who at current and lower prices are forced to scale back production in the coming months', said Ole Hansen, head of commodity strategy at Saxo Bank. Oil trading close to or below US$60 'will obviously not be great for shale producers' either, said Rystad Energy analyst Jorge Leon. 'Having lower oil prices is going to be the detriment to their development,' he told AFP. Some companies extracting oil and natural gas from shale rock have already announced reduced investment in the Permian Basin, located between Texas and New Mexico. For the Opec+ oil alliance, led by Saudi Arabia and Russia, tolerance for low prices varies greatly. Saudi Arabia, the United Arab Emirates and Kuwait have monetary reserves allowing them to easily borrow to finance diversified economic projects, Leon said. Hansen forecast that 'the long-term winners are likely to be major Opec+ producers, especially in the Middle East, as they reclaim market shares that were lost since 2022 when they embarked on voluntary production cuts'. The 22-nation group began a series of cuts in 2022 to prop up crude prices, but Saudi Arabia, Russia and six other members surprised markets recently by sharply raising output. On Saturday, the countries announced a huge increase in crude production for July with an additional 411,000 barrels a day. Analysts say the hikes have likely been aimed at punishing Opec members that have failed to meet their quotas, but it also follows pressure from Trump to lower prices. That is directly impacting the likes of Iran and Venezuela, whose economies depend heavily on oil revenues. A lower-price environment also hurts Nigeria, which like other Opec+ members possesses a more limited ability to borrow funds, according to experts. Bit non-Opec member Guyana, whose GDP growth has surged in recent years thanks to the discovery of oil, risks seeing its economy slow. — AFP
