Headlines & Key Market Movements:
- Bursa Malaysia ends winning streak: The FTSE Bursa Malaysia KLCI (FBM KLCI) closed lower on August 14, snapping a seven-day winning streak. This was attributed to profit-taking and weaker regional market sentiment. The index fell 5.55 points (0.35%) to 1,581.05. It had opened at 1,586.91 and traded between a low of 1,575.79 and a high of 1,595.31 during the session.
- Mixed market breadth: The broader market was negative, with declining stocks outnumbering advancing ones by 616 to 399. Turnover also decreased to 2.40 billion units, valued at RM2.66 billion, from the previous day’s 2.71 billion units.
- Expert outlook: According to a Rakuten Trade analyst, the profit-taking is viewed positively as it allows the market to absorb recent gains. The analyst believes the medium- to long-term outlook remains positive as long as the FBM KLCI holds above the 1,565 support level, with 1,600 as the next upside target.
- Sector Performance:
- Decreased: Financial Services Index (down 23.37 points) and Plantation Index (down 16.34 points).
- Increased: Industrial Products and Services Index (up 0.43 points) and Energy Index (up 1.85 points).
- Heavyweights (Movers):
- Gainers: Public Bank and CIMB both added 1.0 sen to RM4.45 and RM7.20, respectively.
- Losers: Maybank eased 2.0 sen to RM9.84, Tenaga Nasional fell 12 sen to RM13.68, and IHH Healthcare was down 1.0 sen to RM6.90.
- YTL Corp and YTL Power International also contributed significantly to the main index’s losses.
- Actively Traded (Shakers):
- Tanco rose 1.5 sen to 72 sen.
- Oxford Innotech added 3.0 sen to 41 sen.
- Pharmaniaga slipped 1.0 sen to 17.5 sen.
- Mr D.I.Y. fell 6.0 sen to RM1.54.
- 13th Malaysia Plan (13MP): A new economic blueprint was announced, which focuses on developing a “green economy” through measures like facilitating carbon trading and boosting the carbon capture and storage (CCUS) industry. The plan also emphasizes digital transformation with a focus on artificial intelligence (AI) and 5G to drive economic growth and improve public services.
- Budget 2025: The government plans to implement the RON95 petrol subsidy rationalization in mid-2025, which is expected to have a limited and temporary effect on inflation. A new 2% tax on individual dividend income exceeding RM100,000 will also be introduced for the year of assessment 2025.