Friday 29 Mar 2024
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KUALA LUMPUR (July 8): The FBM KLCI closed 1.4% or 21.44 points lower today at 1,508.71, marking a one-year low for the headline index.

Out of the 30 counters on the index, 28 posted declines while only one counter posted gains, whereas one closed unchanged.

Leading the decliners among the FBM KLCI’s constituents were Mr DIY Group (M) Bhd, CIMB Group Holdings Bhd and Telekom Malaysia Bhd. Meanwhile, the lone gainer was Petronas Gas Bhd, and Digi.Com Bhd was unchanged.

According to Malacca Securities head of research Loui Low, the decline in investor sentiment was due to a confluence of factors.

For one, the higher number of Covid-19 cases has dampened the outlook on the reopening of the economy in the second phase of the National Recovery Plan.

Meanwhile, recent political events and the lower Dow Jones futures have also weighed on sentiment as well.

“As such, all these factors have been priced into today’s decline,” he said.

Over the past year, the FBM KLCI has declined by 4.7%.

Market breadth was too firmly in the red, with 1,055 counters posting declines, versus the 147 counters that saw gains and the 287 counters that went unchanged.

Top actives included Serba Dinamik Holdings Bhd, Advance Synergy Bhd and Pelikan International Corp Bhd, whereas the top gainers' list was dominated by Kumpulan H & L High-Tech Bhd, Widetech (Malaysia) Bhd and Y&G Corp Bhd. The top losers' list was headed by Genetec Technology Bhd, Nestle (Malaysia) Bhd and Kuala Lumpur Kepong Bhd.

In terms of market developments today, Bank Negara Malaysia announced that it would be maintaining the overnight policy rate (OPR) at 1.75%. It noted that the country’s growth outlook remains subject to significant downside risks, due mainly to factors that could lead to a delay in the easing of containment measures or imposition of tighter containment measures, and weaker-than-expected global growth recovery.

The declines seen at Bursa Malaysia were not out of place today. Other regional bourses were largely in the red, with the Straits Times Index down 1.08% or 34.01 points at 3,107.59.

Markets in China were also down as well. Hong Kong's Hang Seng finished 2.89% or 807.49 points lower at 27,153.13, while the Shanghai Composite was 0.79% or 28.21 points lower at 3,525.5.

The Nikkei 225 in Japan closed 0.88% or 248.92 points lower at 28,118.03.

Reuters reported that stocks, particularly Chinese equities, were down on jitters over a Chinese crackdown on technology firms.

Edited ByLam Jian Wyn
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