Stocks in Bursa experience a decline due to inadequate purchasing activity

In the Malaysian stock market today, the FBM KLCI closed lower, reflecting a general trend of declining stocks. The index lost 0.37 of-a-point, closing at 1,578.15, down from yesterday's close of 1,578.52.

The broader market saw more declining stocks (552) than gaining ones (385), with several notable companies experiencing a drop in share prices. Velesto Energy ticked down 1 sen to 20.5 sen, Zetrix AI slipped 0.5 sen to 86.5 sen, and Tanco Holdings slipped 0.5 sen to 79.5 sen. Sime Darby eased 3 sen to RM2.03.

Among the heavyweights, Maybank, Public Bank, CIMB Group, IHH Healthcare, and Tenaga Nasional closed at RM9.99, RM4.27, RM7.30, RM6.91, and RM13.06 respectively, with Maybank and Public Bank adding 1 sen, CIMB Group gaining 7 sen, IHH Healthcare remaining unchanged, and Tenaga Nasional shedding 4 sen.

The total turnover declined to 2.32 billion units worth RM2.30 billion from 2.70 billion units worth RM2.80 billion yesterday. Warrants turnover also decreased, with 723.44 million units worth RM108.28 million traded.

Rakuten Trade Sdn Bhd Vice-President of Equity Research, Thong Pak Leng, attributed the muted trading to a lack of buying interest. He noted that the low participation and volumes led to less trade in the current trading week, which only has three days.

The FBM 70 Index lost 54.69 points to 16,434.71, and the FBMT 100 Index slipped 11.36 points to 11,484.16. The FBM Emas Index trimmed 11.24 points to 11,715.29, and the FBM Emas Shariah Index dipped 32.10 points to 11,675.52.

In contrast, the ACE Market volume was higher at 363.27 million units worth RM96.72 million. The FBM ACE Index was 15.36 points lower at 4,738.73.

Notably, Thong mentioned that the Bank Negara Malaysia monetary policy committee's decision to maintain the overnight policy rate at 2.75% has no impact on the local stock market.

The Main Market volume dwindled to 1.24 billion units valued at RM2.09 billion, with sectors such as consumer products and services, industrial products and services, construction, technology, financial services, property, plantation, REITs, closed/fund, energy, healthcare, telecommunications and media, transportation and logistics, utilities, and business trusts all experiencing a decrease in trading volume.

Bursa Malaysia, a company mentioned by Thong, has seen low past buyer interest, contributing to reduced trading. The current trading week's low volume and less trade are likely to continue due to its short duration.