KUALA LUMPUR (Sept 20): Bursa Malaysia Bhd's share price and foreign shareholding have fallen to their lowest since June 2020 as investors trade securities against a backdrop dictated by the global Covid-19 pandemic which has influenced world fiscal and monetary decisions to support economic growth.

According to updates on bourse regulator and operator Bursa's website today, the group's share price fell three sen or 0.4% at 3.22pm to RM7.39, which values the company at about RM5.98 billion.

Bursa, which has 809.28 million issued shares, has traded between RM7.37 and RM7.44 so far today.

At RM7.37, Bursa's intraday share price is at its lowest, probably since June 26, 2020 when the stock's price closed at RM7.28.

Meanwhile, Bursa's foreign shareholding fell to 17.2% in August 2021 from 18.1% a month earlier (July 2021), latest updates on the group's website showed.

In June 2020, Bursa's foreign shareholding stood at 17%, the group said.

Today, Bursa's share price has fallen in tandem with the broader market as investors take cue from factors including the US Federal Reserve's (Fed) policy meeting tomorrow (Sept 21) and on Wednesday (Sept 22) during which the Fed is expected to lay the groundwork for its quantitative easing (QE) tapering or the gradual reduction of asset purchases.

Such asset purchases by the Fed are intended to support the US economy which is recovering from the impact of the Covid-19 pandemic.

Anticipation of the US' QE tapering has led to expectation of US interest rate hikes. In theory, interest rate hikes are bad for stock markets.

Globally, it was reported today that MSCI's broadest index of Asia-Pacific shares outside Japan slid 1.8% to its lowest since Aug 24, with Australia down sharply by 2%.

"Dow Jones futures were down 1% and S&P 500 futures declined 0.8%, after all three Wall Street indexes marked weekly losses on Friday after days of turbulence.

"The Fed is still expected to lay the groundwork for a tapering at its policy meeting on Tuesday and Wednesday, though the consensus is for an actual announcement to be delayed until the November or December meetings.

"Yields on 10-year Treasuries touched a two-month top and the curve flattened ahead of the meeting," Reuters reported.

On Bursa today, the 30-stock FBM KLCI fell 17.39 points or 1.12% to 1,531.12 at 4pm.

TA Securities Holdings Bhd analysts wrote in a note today that as technical momentum indicators for the KLCI continue to weaken following last week's correction resumption, further downward bias can be expected in the immediate term.

"Lukewarm trading interest should persist given uncertainties over the adverse earnings impact from interest-free loan (repayment) moratoriums and potential corporate windfall tax on supernormal profits on listed companies due to the pandemic. Stronger evidence of a sustained recovery in the local pandemic situation will be key to strengthen economic recovery plays," TA said.

MIDF Amanah Investment Bank Bhd analysts wrote in a note today that foreign investors remained net buyers of Malaysia-listed equities last week, which saw net inflow amounting to RM125.97 million.

"This was the sixth consecutive week of net buying by the foreign investors," MIDF said.