Bursa Malaysia opens lower on fears over high energy, commodity prices
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KUALA LUMPUR, March 8 — Bursa Malaysia opened lower today as traders became increasingly concern over the high energy and commodity prices due to the Russia-Ukraine conflict, a dealer said.
At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) declined 1.22 per cent or 19.22 points to 1,553.34 from 1,572.56 at yesterday’s close.
The barometer index opened 6.11 points weaker at 1,566.45.
On the broader market, losers surpassed gainers 443 to 50, while 186 counters were unchanged, 1,593 untraded and 11 others suspended.
Turnover stood at 206.37 million units worth RM107.87 million.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the Dow Jones Industrial Average (DJI Average) declined by almost 800 points, while the Nasdaq lost 480 points to almost a one-year low.
“Back home, we expect the market to rebound from bargain-hunting activities, otherwise, the local bourse may be stuck in a consolidation mode,” he told Bernama.
Meanwhile, the Council of Palm Oil Producing Countries (CPOPC) also raised concern over the Russia-Ukraine conflict to significantly curtail the availability of sunflower oil for various applications, whereby food manufacturers will have to look elsewhere to circumvent their losses.
Ukraine and Russia are the major producers of the world’s sunflower oil, accounting for 7.3 and 5.8 million tonnes, respectively, in 2020.
Together, these two countries account for nearly 73 per cent of the export trade in sunflower oil.
According to another news report, Asian stocks also slumped, mirroring the Wall Street amid fear on the possible inflation shock arises from commodity prices and impact on the global economy.
Hence, Thong expects the FBM KLCI index to hover between the 1,565-1,585 range today.
Among the heavyweights, Hong Leong Financial decreased 32 sen to RM18.74, Petronas Dagangan fell 36 sen to RM20.44, Tenaga Nasional eased one sen to RM8.90, IHH Healthcare decreased 17 sen to RM6.28, and Dialog Group slipped seven sen to RM2.60.
Of the actives, G3 Global added half-a-sen to eight sen, DNex dropped 5.5 sen to 87.5 sen and TWL Holdings slid half-a-sen to 5.5 sen.
On the index board, FBM Emas Index erased 137.51 points to 10,936.32, FBM Emas Shariah Index narrowed 171.58 points to 11,654.85, FBM 70 inched down 149.74 points to 12,608.79, FBMT 100 Index shed 130.73 points to 10,654.30, and FBM ACE dipped 87.54 points to 5,061.08.
Sector-wise, the Industrial Products and Services Index weakened 3.02 points to 206.55, the Financial Services Index contracted 139.66 points to 15,802.06, and the Plantation Index lost 190.46 points to 8,171.52. — Bernama