KUALA LUMPUR – Bursa Malaysia opened on a volatile mode, driven by local and foreign uncertainty over economic recovery as the Covid-19 pandemic continues to be the main market mover.
At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 0.98 of-a-point to 1,508.49 from the previous close of 1,509.47.
On the broader market, gainers powered above losers 204 to 129, while 229 counters were unchanged, 1,562 untraded and 20 others suspended.
Total volume stood at 198.20 million units worth RM141.76 million.
Malacca Securities, in its equity note today, said the knee-jerk reaction selldown due to the projected number of Covid-19 cases at end-October 2020.
Health director-general Tan Sri Dr Noor Hisham Abdullah was reported as saying that Malaysia’s daily new Covid-19 cases, which have been rising in the past few days, are likely to continue to spike for at least two days and up to a week.
"Nevertheless, speculations over MCO 2.0 that have been quashed by the Prime Minister’s latest announcement may provide some alleviation to the selldown,” it said.
It added that the lower liners and broader market shares have turned downbeat, which may see any gains to be tempered by quick profit-taking over the near term amid the rising cases of Covid-19.
On the technical forefront, it said the FBM KLCI has formed a bearish candle after rejecting the daily EMA20 level after the key index erased all its intraday gains yesterday.
"Under the prevailing situation, the 1,500 level will come into play again with the immediate support at 1,480, followed by 1,450. Upside-wise, the immediate resistance is at 1,520, followed by 1,540," it said.
On the international front, an analyst said the decision by President Donald Trump to end talks with Democratic Party leaders on a new stimulus package, hours after Federal Reserve Chair Jerome Powell’s strongest call yet for greater spending to avoid damaging the economic recovery, pushed market sentiment lower.
"With the US economy now facing one of the worst downturn in history, lack of government financial intervention would cause the economy to fall behind, pushing recovery further," she said.
It was reported by Bloomberg that the US President has instructed its representatives to stop negotiating until after the presidential election which will be held on November 3.
"Immediately after I win, we will pass a major stimulus bill that focuses on hardworking Americans and small business,” Trump said yesterday in a tweet.
Of the heavyweights, MISC declined 38 sen to RM6.73, Maybank shed three sen to RM7.16, Petronas Chemicals was flat at RM6.00 while Top Glove added eight sen to RM8.72.
Among the gainers, UWC added 20 sen to RM6.50 and JF Technology rose 10 sen to RM3.88, while on losers end, Malaysia Pacific shed 12 sen to RM19.00 and PNE PCB declined 11 sen.
On the index board, the FBM Emas Index added 6.17 points to 10,884.16 and the FBM Emas Shariah Index was up 19.20 points to 13,009.70.
The FBM 70 declined 17.14 points to 14,257.01, the FBMT 100 Index inched 4.04 points to 10,710.54, and the FBM ACE was 39.75 points higher at 10,281.10.
Sector-wise, the Financial Services Index declined 30.98 points to 12,418.89, while the Plantation Index added 20.98 points to 6,984.56, and the Industrial Products and Services Index was 0.55 of-a-point stronger at 140.10. – Bernama, October 7, 2020
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