UOB Kay Hian Wealth Advisors head of investment research Sedek Jantan said the barometer index held steady, reflecting improved investor sentiment following the market’s negative reaction to US president Joe Biden’s administration proposed restrictions on artificial intelligence (AI) chip exports.
Sedek noted that concerns raised by the Washington DC-based Information Technology Industry Council, which criticised the rules for potentially limiting US companies’ competitiveness in global markets, may have alleviated some pressure on regional equity markets, including Malaysia.
Nevertheless, the broader market sentiment remains fragile, weighed by weaker global economic data.
China’s inflation data, released yesterday, met expectations at +0.1% year-on-year in December, but offered little encouragement to the market, as deflationary risks persist.
“While investors are closely monitoring potential consumption-driven stimulus to revive China’s domestic demand, the lack of immediate action from Chinese policymakers has dampened optimism.
“These uncertainties continue to shape regional market dynamics, though the FBM KLCI has demonstrated resilience amid these headwinds,” he told Bernama.
Sedek said that later today, markets will turn their attention to the release of December’s non-farm payroll data in the US.
“The job numbers and unemployment rate will likely provide critical insights into the Federal Open Market Committee’s (FOMC) policy direction, potentially influencing global sentiment in the coming sessions,” he added.
Regionally, China’s SSE Composite Index dipped 1.33% to 3,168.52, Japan’s Nikkei 225 declined 1.05% to 39,190.40, Hong Kong’s Hang Seng Index lost 0.92% to 19,064.29 and Singapore’s Straits Times Index tumbled 1.58% to 3,801.56.
At 5pm, the benchmark index edged up 1.60 points, or 0.10%, to 1,602.41 from yesterday’s close of 1,600.81.
The index opened 2.73 points higher at 1,603.54 and moved between 1,599.71 and 1,605.74 throughout the day.
The overall market breadth was slightly negative with 530 losers and 443 gainers, while 551 counters were unchanged, 845 untraded, and 19 others suspended.
Turnover narrowed to 2.52 billion units valued at RM2.42 billion against yesterday’s 3.49 billion units valued at RM2.93 billion.
Among the heavyweights, CIMB gained seven sen to RM8.18, YTL Power added five sen to RM4.25, Maxis was four sen firmer at RM3.65, while Sunway and Sime Darby fell one sen each to RM4.62 and RM2.23 respectively. Telekom Malaysia was flat at RM6.55.
For active stocks, MyEG increased 4.5 sen to 96.5 sen, Top Glove climbed three sen to RM1.23 and Vanzo perked up 0.5 sen to 19.5 sen. However, Nationgate fell 17 sen to RM2.45 and Swift Energy lost 3.5 sen to 38.5 sen. Cape EMS was flat at 35.5 sen.
On the index board, the FBM Emas Index climbed 8.10 points to 12,302.77, the FBMT 100 Index perked up 6.05 points to 11,983.84, and the FBM ACE Index advanced by 43.64 points to 5,353.47, while the FBM Emas Shariah Index slipped 10.10 points to 12,250.74 and the FBM 70 Index slid 12.58 points to 18,467.54.
By sector, the industrial products and services index ticked up 0.04 of-a-point to 170.66, but the energy index shed 2.02 points to 833.3, the financial services index fell 70.76 points to 18,924.54, and the plantation index declined 22.74 points to 7,510.62.
The Main Market volume trimmed to 1.45 billion units worth RM2.19 billion against yesterday’s 1.83 billion units worth RM2.59 billion.
Warrants turnover tumbled to 678.03 million units valued at RM68.55 million versus 1.07 billion units valued at RM108.46 million previously.
The ACE Market volume dwindled to 390.05 million units worth RM159.37 million from 583.14 million units worth RM229.70 million yesterday.
Consumer products and services counters accounted for 158.35 million shares traded on the Main Market, industrial products and services (393.27 million), construction (83.02 million), technology (232.95 million), SPAC (nil), financial services (45.27 million), property (172.31 million), plantation (33.96 million), REITs (6.89 million), closed/fund (35,900), energy (67.47 million), healthcare (90.16 million), telecommunications and media (59.76 million), transportation and logistics (25.59 million), utilities (78.29 million), and business trusts (955,900).