KUALA LUMPUR (Jan 22): The FBM KLCI snapped its six-day losing streak today after closing up 1.94 points or 0.12% at 1,596.74 while Bursa Malaysia’s Technology index rose 3.44% to become the top percentage gainer among bourse gauges as investors weighed the economic impact from the reenforcement of Malaysia’s Movement Control Order (MCO) across all States and Federal Territories except Sarawak to control the Covid-19 outbreak.

Investors also evaluated company earnings during the current corporate financial reporting season for the October-to-December 2020 quarter.

At 5pm, the KLCI pared gains after rising to its intraday high at 1,605.7 as world markets took cue from news on US President Joe Biden and China’s Covid-19-driven restrictions.

It was reported that Asian shares slipped off record highs on Friday as investors took profits after a recent rally that was driven by hopes of US economic stimulus under the Biden administration.

It was reported that sentiment was also hit by worries of new coronavirus restrictions in China which reported 103 Covid-19 cases on Friday.

"Crude oil prices fell on Friday, retreating further from 11-month highs hit last week, weighed down by worries that new pandemic restrictions in China will curb fuel demand in the world's biggest oil importer.

"US West Texas Intermediate crude futures dropped 65 cents, or 1.2%, to US$52.48 a barrel at 0740 GMT, after slipping 18 cents on Thursday. Brent crude futures fell 58 cents, or 1.03%, to US$55.52 a barrel, erasing a 2 cent gain on Thursday,” Reuters reported.

In Malaysia, Hong Leong Investment Bank Bhd senior analyst Ng Jun Sheng wrote in a note today the KLCI is expected to remain in consolidation mode "as investors continue to weigh the downside risks to economic and corporate earnings growth from MCO 2.0 coupled with the start of the upcoming fourth quarter 2020 results season.”

Across Bursa today, 6.63 billion securities were traded for RM4.81 billion. Gainers outnumbered decliners at 585 to 535 respectively.

Top gainers included semiconductor-related stocks Malaysian Pacific Industries Bhd (MPI) and Unisem (M) Bhd, both of which partly contributed to the Technology index’s gain as the reenforcement of global Covid-19-driven restricted movement policies led to expectation of higher demand for computer-related products.

MPI’s share price closed up 66 sen or 2.21% at RM30.52 while Unisem rose 57 sen or 7.37% to RM8.30.

Bursa’s technology index ended up 2.68 points or 3.44% at 80.64.

The KLCI snapped its six-day losing streak today since Thursday (Jan 14) when index closed down at 1,635.71 points.

Yesterday, the KLCI fell 6.74 points to 1,594.80.

Starting today, the whole of Malaysia except Sarawak is under the MCO until Feb 4, according to news reports.

News reports quoting Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob said on Tuesday (Jan 19) that six more states, namely Kedah, Perak, Negeri Sembilan, Terengganu, Pahang and Perlis, will come under the MCO again from today until Feb 4.

Earlier, it was reported that the MCO was reinstated in Penang, Selangor, Melaka, Johor and Sabah as well as the federal territories of Kuala Lumpur, Putrajaya and Labuan for a two-week period starting from Jan 13 to Jan 26.

It was subsequently reported that the entire state of Kelantan would be placed under the MCO from Jan 16 until Jan 26.

Yesterday, news reports, quoting Ismail Sabri, said the MCO in Penang, Selangor, Melaka, Johor, Sabah, Kelantan, and the federal territories of Kuala Lumpur, Putrajaya and Labuan had been extended until Feb 4.