KUALA LUMPUR: Shares on the Bursa Malaysia traded broadly lower Wednesday. Selling pressure intensified as the day progressed with the number of losing counters outstripping advancing ones. Market volume was relatively thin with most investors opting to stay on the sidelines.
Investors are likely to remain cautious given prevailing uncertainties. And with dwindling market volume, selling pressure tends to exaggerate the fall in share prices. Sentiment was not aided by similar weakness in key Asian markets Wednesday.
The sharp fall in the latest reading on US consumer confidence fuelled nervousness that the world's largest economy could be headed for a bumpier ride ahead. Although crude oil prices retreated to below US$129 (RM419.25) per barrel, prices are still some one-third higher than they were at the end of last year. Concerns like rising fuel and food prices, job security and the continued slump in the housing market are likely to give US consumers second thoughts on spending in the coming months.
The KL Composite Index was in positive territory in early trading, but quickly succumbed to selling pressure. Losses mounted as the day progressed. The benchmark index ended near its intra-day low at 1,260.6 points, for a loss of almost 14 points.
The relatively thin market volume may have exaggerated losses. Indeed, the volumes transacted on many of the top losers were not big. Total market volume contracted to just about 401 million shares, down from the average of 446 million shares in the two preceding days. The most heavily traded counters were blue chips like IOI Corp, Genting, YTL Power, Telekom Malaysia and Maybank.
Market breadth was in the red throughout the day. At the close, losing counters outstripped gaining ones by a ratio of well over two to one. KL Kepong, PPB, UMW, Shell, IOI Properties, Petronas Gas and Sime Darby were some of the biggest losers.
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