Malaysian stock exchange’s benchmark KLCI at midday shed 3.5 points to 1,596.08 points, from Wednesday’s close of 1,599.58 points.
Market observers noted that the big cap-30 of the Main market mostly traded down, with just three advanced and five unchanged.
Overnight US stock markets experienced their steepest decline in months after the US Federal Reserve (Fed) implemented a 25-basis-point cut that has reduced rates to 4.25%-4.50%, and projected only two additional cuts by the end of 2025, reported Reuters.
The Dow Jones Industrial Average dropped 2.58% to 42,326.87 points, marking its 10th consecutive day of decline and also the longest losing streak in 50 years since 1974. The S&P 500 fell 2.95% to 5,872.16 points, while the Nasdaq Composite slumped 3.56% to 19,392.69 points.
According to Reuters, market participants are pricing in expectations for a revised rate cuts of 33 basis points projected for 2025, down from 49 basis points prior to Wednesday’s announcement (US time zone).
This morning, the key index opened 4.40 points lower, down to 1,595.18 points, then surged to 1597.48 points. As at 10:02am, the benchmark KLCI traded down again by 4.54 points to 1,595.04 points.
Towards the conclusion of the half-day session, the benchmark index recovered slightly, giving up just 3.5 points to finish below the 1600-point threshold.
Winstar Capital Bhd which listed on Bursa’s ACE market today as an industrial listing traded up 16 sen to RM0.51 at midday, up 45.71% from its listing price of RM0.35, on a turnover of 72,457,500 shares/units. The stock opened at RM0.49 this morning and at one point surged to the high of RM0.565. Winstar was also the most actively traded counter during the half-day session.
Sector-wise, the decline in the FBM suite of palm oil-related indices and the plantation sector index indicated that the major plantation stocks might be trading down at midday. The US dollar-denominatd palm oil index (FBMAPUSD) plunged 1.94% to 11,025.49 points, followed by the ringgit-denominated index (FBMAPMYR) which slid 1.20% to 17,251.16 points, and the non-capped index (FBMPALMOIL-NC) which dipped 0.87% to 12,438.61 points. The sector index itself also decreased by 0.81% to 7,571.13 points.
Unsurprisingly, United Plantations Bhd, after five days of advances, traded down 32 sen to RM32.98 on a turnover of 303,200 shares/units. Earlier, the leading plantation operator accumulated an aggregate gain of RM2.18 after five days’ of rallies from last Dec 11’s close of RM31.12, Wednesday-to-Wednesday.
The Industrial Products & Services Index lost 1.10% to 170.59 points while the Technology Index slipped 1.00% to 63.20 points.
In line with the stock movement, the Utilities Index and the Health Care Index also rallied. The Utilities Index surged 1.91% to 1726.74 points, while the Health Care Index moved up 0.46% to 2370.68 points.
YTL utilitites duo were actively traded at midday. YTL Corporation Bhd rose 21 sen to RM2.35 on a turnove rof 42,612,900 shares/units, while YTL Power International Bhd added 24 sen to RM3.90, recording a volume of 34,266,900 shares/units. Market sources speculated that the surge of the YTL duo could be attributed to YTL Communications Sdn Bhd’s “no-charges verdict”. YTL Communications, a subsidiary of YTL Corporation, which had earlier faced allegation of wrongdoing related to the 1BestariNet project, announced on Dec 18 that following an investigation by the Malaysian Anti-Corruption Commission (MACC), no charges would be pursued against the company.
Notably, glove manufacturing stocks under the health care sector are still going strong in terms of liquidity. Supermax Corporation Bhd recorded a turnover of 34,325,000 shares/units, while Top Glove Corporation Bhd registered a turnover of 34,276,800 shares/units. Supermax traded up by two sen to RM1.24, and Top Glove advanced one sen to RM1.39. Additionally, Hartalega Holdings Bhd added three sen to RM4.06 on a volume of 6,144,800 shares/units. Kossan Rubber Industries Bhd added five sen to RM 2.74, after recording a volume of 5,193,900 shares/units. However, Hextar Healthcare Bhd gave up half a sen to RM0.185 on a turnover of 3,100,500 shares/units.
Foodstuff supplier Nestle (Malaysia) Bhd was the top decliner at midday, shedding RM3.22 to RM95.78 on a moderate turnover of 40,500 shares/units, followed by semiconductor manufacturer Malaysian Pacific Industries Bhd which trimmed 38 sen to RM25.90 on a turnover of 124,000 shares/units.
Gas station retailer Petronas Dagangan Bhd and PPB Group Bhd, also a consumer listing, both gave up 34 sen at midday. Petronas Dagangan recorded a turnover of 186,000 shares/units at RM19.90. PPB, meanwhile, registered a turnover of 819,500 shares/units at RM11.78.
At midday, decliners led gainers by 729 to 269, while 444 counters were unchanged.
The half-day turnover amounted to nearly 1.81 billion (1,809,118,900) shares/units valued at around RM1.44 billion (RM1,439,556,488).
