KUALA LUMPUR (June 1): Bursa Malaysia ended the morning session in the red on mild profit taking after recording modest gains at the opening following the RM40 billion PEMERKASA+ package announcement.
However, buying support emerged for index-linked counters in the banking, healthcare, consumer products and services as well as telecommunications sectors to support the index from declining further.
At 12.30pm, the benchmark FBM KLCI settled 2.88 points or 0.18% lower at 1,580.67 from 1,583.55 at yesterday’s close.
The index opened 2.19 points higher at 1,585.74 and moved between 1,580.10 and 1,588.30 throughout the morning trading session.
Market breadth was negative with losers outpacing gainers 573 to 376, while 399 counters were unchanged, 785 untraded and nine others suspended.
Total volume stood at 5.71 billion units worth RM3.26 billion.
Some banking heavyweights posted gains at midday today, mainly buoyed by their positive corporate results released recently.
For example, CIMB Group Holdings Bhd, which posted RM2.46 billion in net profit for the first quarter on an improved operating income, saw its shares jump 14 sen to RM4.42 today, followed by RHB Bank Bhd which added three sen to RM5.33, while Hong Leong Financial Group Bhd gained two sen to RM17.56.
Malayan Banking Bhd (Maybank), however, lost four sen to RM8.14.
The gains in banking stocks drove the financial services index 17.21 points higher to 15,027.01.
A dealer said although the government’s announcement to extend the targeted moratorium to the bottom 40% income group (B40), the banking sector is expected to do well.
“The moratorium is for the targeted segment, therefore the banks will be okay, but if it is a blanket moratorium, it might be difficult for them to sustain their balance sheets,” he said.
Meanwhile, Kenanga Research in a note said that the larger banks would be among the first beneficiaries once the country’s economy recovers after having experienced some headwinds due to the reimplementation of the lockdown.
“With vaccination drives along the way, we are more optimistic about a progressive economic recovery in the second half of 2021 (2H21), which could make up for the shortfall expected in the coming months.
“We foresee May and June 2021 to only experience headwinds, especially the latter as a lockdown is being reimplemented, and we suspect further extension after the two-week period could follow based on past trends, and this would undoubtedly affect demand for loans until movement restrictions are eased,” it said.
Among the 30 index-linked heavyweights, Public Bank Bhd erased two sen to RM4.19, Petronas Chemicals Group Bhd (PetChem) slipped two sen to RM8 and Top Glove Corp Bhd dropped 10 sen to RM5.08.
Of the top losers, British American Tobacco (Malaysia) Bhd (BAT) declined 88 sen to RM14.88, Pharmaniaga Bhd decreased 60 sen to RM5.97 and Sedania Innovator Bhd was 30 sen weaker at RM1.08.
Of the actives, Serba Dinamik Holdings Bhd, which has removed KPMG PLT as the group’s external auditor, saw its shares fall 24 sen to 89 sen, while its warrants were up four sen at 12 sen. Meanwhile, UCrest Bhd slipped half a sen to 43 sen.
On the index board, the FBM Emas Index fell 26.54 points to 11,469.27 and the FBMT 100 Index skidded 26.10 points to 11,172.49.
The FBM Emas Shariah Index dwindled 55.67 points to 12,717.24, the FBM 70 weakened 56.78 points to 14,706.12 and the FBM ACE gave up 71.52 points to 7,609.74.
Sector-wise, the Financial Services Index rose 17.21 points to 15,027.01, the Industrial Products and Services Index edged down 0.38 of a point to 190.48, and the Plantation Index slipped 39.56 points to 6,842.84.
