KUALA LUMPUR (Jan 21): The FBM KLCI fell below 1,600 to close near its intraday low as the movement control order (MCO) expansion affected market sentiment.

The index ended the day 6.74 points or 0.42% lower at 1,594.8, after having risen to a high of 1,615.22.

Areca Capital Sdn Bhd CEO Danny Wong said investors were taking profit as they felt the MCO would delay economic recovery.

“Big caps may need longer time to recover due to the MCO expansion and rising Covid-19 cases,” he told theedgemarkets.com.

TA Securities also said in a note today that stocks would trade sideways in the near term, with the broader market consolidating amid the MCO expansion.

Key chart supports for the index remain at last week's low of 1,590, followed by 1,574. Meanwhile, immediate resistance will be 1,635, followed by 1,660.

Across Bursa Malaysia today, 6.72 billion securities were traded for RM4.29 billion, compared with 5.86 billion securities worth RM4.38 billion yesterday.

Losers led gainers by 812 to 347, while 413 counters traded unchanged.

Among the 30 component stocks, the top loser was PPB Group Bhd, which slipped 26 sen or 1.36% to RM18.82.

Glove stocks were also facing selling pressure. Top Glove Corp Bhd dropped 12 sen or 1.95% to RM6.02, Supermax Corp Bhd fell 20 sen or 3.17% to RM6.11 and Hartalega Holdings Bhd lost 22 sen or 1.83% to RM11.80.

The top gainers were Public Bank Bhd, which rose 24 sen or 1.13% to RM21.56, and Petronas Dagangan Bhd, which increased 12 sen or 0.6% to RM20.12.  

Elsewhere in Asia, stocks rose today, tracking US markets as investors hoped for more economic stimulus from newly inaugurated US President Joe Biden to offset damage wreaked by the Covid-19 pandemic, Reuters reported.

Japan’s Nikkei ended 0.82% higher at 28,756.86 and South Korea’s Kospi finished 1.49% higher at 3,160.84.

The Shanghai composite index closed 1.07% higher at 3,621.26, but the Hang Seng index ended 0.12% lower at 29,927.76.