KUALA LUMPUR: Sentiment on the Bursa Malaysia stayed weak on Thursday. Despite strong overnight gains on Wall Street and a rally in key regional markets, local stocks drifted broadly lower.
By contrast, most Asian markets rebounded strongly. This may be attributed to bargain hunting after the recent sell off. Sentiment also improved after crude oil prices continued to ease. Crude futures traded on the New York Mercantile Exchange are currently hovering around US$135 (RM441.45) per barrel, off its recent record high of US$147 per barrel.
Nevertheless, the regional rally failed to spur buying interest in the local bourse. Aside from external factors, domestic uncertainties are also playing an increasingly important role in influencing investor psyche.
The arrest of opposition de facto leader Datuk Seri Anwar Ibrahim the previous day certainly underscores the heightened tension in the local political landscape. Although he has since been released on bail, there remain many questions as to what will happen next.
With such a clouded outlook, most investors are avoiding making any fresh bets in the market at the moment. Trading volume remained near the lows so far this year. Just over 292 million shares were traded. Until some degree of resolution is seen, we suspect interest in the local bourse will stay lacklustre.
The KL Composite Index was in the red for much of the day. It fell as low as 1,111.6 points intraday before a spurt of last minute buying lifted the benchmark index back into positive territory. The KLCI finished less than two points higher at 1,121.2 points.
Similarly, market breadth was also negative for the better part of the day before reversing near the close. At the close, the number of gaining counters managed to just edge ahead of losing ones.
IOI Corp, Resorts World and Telekom Malaysia were some of the day's most heavily traded counters. Jaya Tiasa was the biggest gainer on razor thin volume.
No comments:
Post a Comment