KUALA LUMPUR (July 4): Bursa Malaysia ended the morning trading session broadly lower ahead of Bank Negara Malaysia's Monetary Policy Meeting on Tuesday (July 5), with market participants anticipating another 25-basis-point hike, aimed at taming inflationary pressures.  

At 12.30pm on Monday, the FBM KLCI had shed 9.65 points or 0.67% to 1,440.09 from last Friday's close at 1,449.74. 

The benchmark index, which opened 0.24 of a point easier at 1,449.50, moved between 1,439.47 and 1,449.50 throughout the morning session.

Overall market breadth was negative with losers leading gainers 594 to 196, while 314 counters were unchanged, 1,124 untraded and 14 others suspended.

Turnover stood at 1.03 billion units worth RM501.49 million.

In a note, Malacca Securities Sdn Bhd expects the local bourse to remain volatile as inflationary pressure and recession fears continued, noting that investors are likely to stay cautious prior to Malaysia’s interest rate decision and the US Federal Open Market Committee meeting later this month. 

“As for the second half of 2022, we remain optimistic about recovery-themed stocks such as banking, consumer and tourism.

“Additionally, the energy sector may gain traction on the back of persistent tight supply in the market, and investors may scoop up technology shares in view of the rebound on the Nasdaq,” it added. 

 Among the heavyweights, Petronas Chemicals Group Bhd gained three sen to RM9.11, while Malayan Banking Bhd (Maybank) slipped four sen to RM8.59, Public Bank Bhd declined three sen to RM4.39, IHH Healthcare Bhd went down seven sen to RM6.41 and CIMB Group Holdings Bhd eased two sen to RM5.01.

Of the actives, Dagang NeXchange Bhd (DNeX) inched up half a sen to 79.5 sen, Jade Marvel Group Bhd and Widad Group Bhd were flat at 91 sen and 36.5 sen respectively, while Top Glove Corp Bhd shed two sen to 99 sen and Cypark Resources Bhd decreased 2.5 sen to 32.5 sen.  

On the index board, the FBM Emas Index depreciated 67.59 points to 10,248.29, the FBM Emas Shariah Index was down 88.43 points to 10,392.55, FBM 70 fell 61.39 points to 12,342.15, FBM ACE trimmed 101.13 points to 4,683.39 and the FBMT 100 Index discounted 62.95 points to 9,996.76. 

Sector-wise, the Financial Services Index weakened 42.15 points to 16,014.66, the Industrial Products and Services Index was 0.95 of a point easier at 180.74, and the Plantation Index shrank 40.73 points to 6,883.99.