Shares on Bursa traded mixed on July 31

Shares on Bursa traded mixed on July 31. There was some evidence of profit taking following the recent string of gains. The KL Composite Index drifted within a narrow range while market breadth was biased to the negative.

Trading sentiment was also somewhat ambivalent in key Asian markets. Investors are looking for fresh catalysts and clues as to where the global financial markets are next headed.

Falling crude oil prices had been the key driving force, pushing share prices broadly higher in the last two to three weeks. However, the oil market reversed course on Wednesday night on the New York Mercantile Exchange. Crude oil futures rose sharply to close just below US$127 (RM415.29) per barrel after falling as low as US$120 per barrel.

Oil prices gained after Iran vowed to continue its nuclear programme, aggravating tensions in the Middle East. The US also reported an unexpected fall in gasoline stocks. Although prices are still below record high levels, it remains to be seen if the latest retreat is sustainable.

The KLCI opened in positive territory but pared gains as the day progressed. Profit taking exerted some downward pressure on prices as investors lock in gains from the last few days. Market breadth fell into the red not long after the opening.

The benchmark index ended three points higher at 1,163.1 points. At the close, losing stocks outnumbered gaining ones by a ratio of roughly five to four. Trading volume also fell to its lowest level this week as investors reverted to a more cautious stance. About 423 million shares changed hands Thursday.

CCB was the top gainer after announcing special dividends of RM1.35 sen per share. The stock surged 94 sen to close at RM3.24, and will trade ex-entitlement August 27. Plantations stocks saw mild renewed interest after crude palm oil prices regained some lost ground, in line with the higher crude oil prices. KL Kepong, Asiatic and IOI Corp chalked up gains.