Malacca Securities Sdn Bhd said Wall Street closed mixed as the Dow Jones Index advanced 0.2%, but the S&P 500 and Nasdaq slipped by 0.3% and 0.4%, respectively, due to the mixed bag of corporate earnings.
Back home, it said the S&P Global Malaysia Manufacturing PMI, which came in at 47.8 in July 2023, suggested that a sustained slowdown in business conditions has some way to go before demand recovers.
“Nevertheless, we believe that the pullback is healthy to allow recent gains to be digested.
“The lower liners are also experiencing a consolidation with traders opting for the wait-and-see approach ahead of the state election,” the brokerage said in a note.
Sector-wise, it said defensive sectors such as healthcare, utilities and REIT may be in the spotlight given the emerging signs of volatility, while the technology sector may mirror the weakness in the Nasdaq overnight.
At 9.10am, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 2.99 points to 1,448.25 from 1,451.24 at yesterday’s close.
The key index opened 1.79 points weaker at 1,449.45.
The broader market was also negative as decliners surpassed advancers 147 to 126, while 260 counters were unchanged, 1,732 untraded and 17 others suspended.
Turnover stood at 203.32 million units worth RM89.52 million.
Among the heavyweights, Maybank lost 4 sen to RM8.95, CIMB fell 5 sen to RM5.47, Tenaga Nasional slid 2 sen to RM9.53 and Petronas Chemicals decreased 6 sen to RM6.79, while Public Bank was flat at RM4.12.
Among the actives, Revenue, Advance Synergy and Widad increased 0.5 sen each to 26.5 sen, 16.5 sen and 43 sen, respectively, while Tanco and its warrants were both flat at 54.5 sen and 22.5 sen, respectively.
On the index board, the FBM Emas Index went down 18.74 points to 10,639.83, the FBMT 100 Index decreased 18.74 points to 10,333.71, the FBM Emas Shariah Index weakened 15.2 points to 10,907.59, the FBM ACE Index eased 13.65 points to 5,293.76 and the FBM 70 Index declined 14.43 points to 13,956.78.
Sector-wise, the plantation index dwindled by 6.2 points to 7,138.21, the industrial products and services index reduced by 0.43 of-a-point to 167.14 and the financial services index slid by 47.52 points to 16,144.74, while the energy index inched up 4.64 points to 837.75.