Hong Kong’s Hang Seng Index led the regional decline, losing 1.94% to 18,234.27, Japan’s Nikkei 225 fell 1.41% to 30,887.88, Singapore’s Straits Times Index eased 0.90% to 3,158.80, and China’s SSE Composite Index dipped by 0.61% to 3,204.56.
The domestic barometer index, the FTSE Bursa Malaysia KLCI (FBM KLCI), ended the day 9.79 points or 0.70% lower at 1,387.12 from 1,396.91 at yesterday’s close.
The key index opened 0.23 of-a-point weaker at 1,396.68, and subsequently fluctuated to an intraday low of 1,380.90, or 1.1% lower, and an intraday high of 1,398.38 in the early morning session.
The broader market was bearish with decliners thumping advancers 521 to 360, while 387 counters were unchanged, 980 untraded and 33 others suspended.
Turnover jumped to 3.54 billion units worth RM5.25 billion versus 2.38 billion units valued at RM2.01 billion yesterday.
A major debt ceiling bill negotiated by US President Joe Biden and house speaker Kevin McCarthy passed through a House Committee yesterday and will now go to the full House for a vote expected later today.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the focus will remain on developments in the implementation of the US debt deal right up to the June 5 deadline.
He said the faster-than-expected fall in China’s manufacturing print showed that its economic recovery continued to lose steam, further triggering a sour market mood.
It was reported China’s Purchasing Managers’ Index (PMI) slipped to 48.8 this month from 49.2 in April, according to data released by the National Bureau of Statistics on Wednesday. A reading below 50 indicates contraction.
Nevertheless, Thong views the current low valuation in the local equities market to be attractive to entice bargain hunters.
“On the domestic front, sentiments may be cautious in view of external factors. However, we believe the FBM KLCI has been significantly undervalued.
“Hence, we expect the key index to hover within the 1,385-1,395 range for the remainder of the week, with immediate support at 1,370 and resistance at 1,400,” he told Bernama.
Among the heavyweights, Maybank added 6 sen to RM8.65, Public Bank lost 3 sen to RM3.81, Tenaga Nasional was 11 sen weaker at RM9.51, Petronas Chemicals dipped 19 sen to RM6.56, while CelcomDigi eased 10 sen to RM4.47.
CIMB was down 7 sen to RM4.82 and IHH slid 1 sen to RM5.77.
Among the actives, MyEG was 5 sen better at 84 sen, Main Market debutant, Radium Development, slipped 11.5 sen to 38.5 sen, YTL Corp rose 6 sen to 97 sen, while Hap Seng Consolidated fell 44 sen to RM3.62.
On the index board, the FBM Emas Index slid 36.02 points to 10,243.09, the FBMT 100 Index was 33.39 points easier at 9,949.51, the FBM Emas Shariah Index fell 47.90 points to 10,606.51, the FBM ACE Index was 19.85 points lower at 4,947.24, and the FBM 70 Index surged 105.98 points to 13,656.87.
Sector-wise, the financial services index trimmed 62.56 points to 15,206.74, the industrial products and services index lost 3.41 points to 159.11, the plantation index tumbled 146.42 points to 6,601.08, and the energy index shed 17.60 points to 809.44.
The Main Market volume jumped to 2.75 billion units valued at RM5.03 billion from 1.61 billion units valued at RM1.79 billion on Tuesday.
Warrants turnover narrowed to 253.92 million units worth RM35.22 million against 291.34 million units worth RM35.75 million yesterday.
The ACE Market volume swelled to 535.22 million shares valued at RM186.02 million from 475.20 million shares valued at RM179.17 million previously.
Consumer products and services counters accounted for 383.27 million shares traded on the Main Market, industrial products and services (441.19 million); construction (111.22 million); technology (400.56 million); SPAC (nil); financial services (267.63 million); property (375.73 million); plantation (48.97 million); REITs (58.50 million), closed/fund (135,600); energy (162.04 million); healthcare (163.48 million); telecommunications and media (119.69 million); transportation and logistics (41.15 million); and utilities (175.42 million).