UOB Kay Hian Wealth Advisors head of investment research Sedek Jantan said market activity was predominantly influenced by data-driven sentiment, with investors adopting a cautious approach.
“Profit-taking was evident as investors secured gains amid concerns over a potential spike in the US Producer Price Index (PPI), scheduled for release later today.
“This economic indicator could trigger market volatility,” he told Bernama.
Meanwhile, he said despite the construction sector’s robust growth of over 20% in the second quarter of 2024, as reflected in work done value worth RM38.9 billion, and its status as a beneficiary of data centre investments in Malaysia, the Bursa Malaysia Construction Index saw a decline of over 1.78%.
He said this demonstrated investors’ preference for profit-locking and a shift towards a defensive investment strategy.
Sedek also stated that as investors await the release of the US inflation data and the monthly jobs report, trading is likely to remain subdued.
“While volatility decreased compared to the previous week, a cautious market mood prevented significant price movements.
“This is reflected in today’s lower trading volume of 3.41 billion shares compared to yesterday’s 4.01 billion shares, against an average daily volume of 4.28 billion shares,” he said.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 0.17% or 2.86 points to its intraday high of 1,609.52 from yesterday’s close of 1,606.66.
The benchmark index opened 0.82 of-a-point easier at 1,605.84 and dipped to a low of 1,598.30 in the early morning session.
On the broader market, decliners outpaced gainers 705 to 334, with 460 counters unchanged, 947 untraded and nine others suspended.
Turnover fell to 3.41 billion units worth RM2.49 billion from yesterday’s 4.01 billion units valued at RM2.93 billion.
Among the heavyweights, Maybank and Public Bank were flat at RM10.20 and RM4.26 respectively, Tenaga dropped four sen to RM13.90, CIMB rose six sen to RM7.42, IHH Healthcare increased three sen to RM6.28, and CelcomDigi added four sen to RM3.81.
Of the active counters, Cape EMS eased five sen to 45.5 sen, newly listed Sik Cheong gained nine sen to 36 sen, Top Glove dipped three sen to 90.5 sen, Velesto shed 0.5 sen to 20.5 sen, and MyEG slid one sen to 90.5 sen.
On the index board, the FBM Emas Index fell 10.47 points to 12,244.74, the FBMT 100 Index eased 0.66 of-a-point to 11,884.1, the FBM 70 Index decreased 81.15 points to 17,758.59, the FBM Emas Shariah Index slipped 29.29 points to 12,373.06, and the FBM ACE Index eased 58.55 points to 5,388.73.
Sector-wise, the financial services index climbed 41.14 points to 18,212.63, while the energy index was 2.53 points weaker at 923.88.
The industrial products and services index was flat at 181.52, the technology index shed 0.52 of-a-point to 71.19, and the plantation index improved by 12.33 points to 7,125.88.
The Main Market volume tumbled to 1.77 billion units valued at RM2.14 billion from 2.5 billion units worth RM2.58 billion yesterday.
Warrants turnover expanded to 1.06 billion units worth RM146.26 million from 924.4 million units valued at RM123.04 million previously.
The ACE Market volume dwindled to 570.9 million shares valued at RM208.29 million from 580.17 million shares worth RM208.5 million yesterday.
Consumer products and services counters accounted for 239.87 million shares traded on the Main Market, industrial products and services (510.9 million), construction (133.81 million), technology (165.99 million), SPAC (nil), financial services (64.2 million), property (204.59 million), plantation (22.29 million), REITs (9.1 million), closed/fund (70,600), energy (157.6 million), healthcare (94.63 million), telecommunications and media (35.69 million), transportation and logistics (72.02 million), utilities (66.46 million), and business trusts (228,400).