KLCI closes lower in cautious trading amid political uncertainties

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KUALA LUMPUR (Oct 28): The FBM KLCI closed lower as market sentiment remained cautious with political uncertainties still lingering ahead of the Budget 2021 announcement next week. 

The key index was in negative territory for the most part of the trading session, before closing 5.15 points or 0.34% lower at 1495.2. 

Market breadth was thin with 4.66 billion shares traded at a total value of RM3.44 billion, with losers dominating the market by 657 against 267 winners. 

Reuters noted that Malaysian shares eased as political tensions cast doubt over whether the government could pass the 2021 budget next week. 

"All eyes are on the 2021 Federal Budget next week, which comes as a key test of confidence in Prime Minister Tan Sri Muhyiddin Yassin's coalition government," the news agency quoted analysts at ING as saying. 

TA Securities, in a market report today, said the exponential surge in Covid-19 cases in the US and Europe should boost the demand outlook for rubber gloves and healthcare related stocks, and hence extend the outperformance of these sectors.  

However, the exponential earnings growth of Hartalega Holdings Bhd and Supermax Corp Bhd did not seem to add fuel to a share price rally today among rubber glove stocks, as a low risk appetite and cautious sentiment weighed in further. 

In other markets, Japan’s Nikkei 225 fell 0.29% and Hong Kong’s Hang Seng lost 0.32%. On the other hand, South Korea’s Kospi rose 0.62% while the Shanghai composite gained 0.46%. 

S Kanagaraju