KLCI declines 1.31%, bucking regional gains

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KUALA LUMPUR (Oct 7): The FBM KLCI fell 1.31% today against the backdrop of higher Covid-19 cases, new infection clusters, as well as declines in crude oil prices, despite the generally positive sentiment in the regional markets.

At 5pm, the benchmark index fell 19.91 points or 1.31% to close at 1,489.56 points, marking its second consecutive day of decline.

In a note, Hong Leong Investment Bank analyst Ng Jun Sheng said the major supports for the index stood at the 1,474 and 1,450 levels.

“Nevertheless, a further sharp fall is likely to be cushioned by the prime minister’s assurance that there will not be another total lockdown, but [only the enforcement of] Targeted Enhanced Movement Control Order (TEMCO) in high-risk areas to prevent significant impact on Malaysia’s economic and social systems,” said Ng.

Meanwhile, crude oil prices fell today, with Brent crude futures recording a 1.64% decline to US$41.95 per barrel.

A total of 5.25 billion shares were traded on the bourse, valued at RM3.61 billion.

The losers were led by Nestle (Malaysia) Bhd, Petronas Dagangan Bhd and Fraser & Neave Holdings Bhd, while the gainers were led by Dutch Lady Milk Industries Bhd.

The most actively traded stock was Kanger International Bhd, with a total of 252.6 million shares traded.

Elsewhere in the region, markets were mostly up. Hong Kong’s Hang Seng gained 1.09%, South Korea’s Kospi rose 0.89%, while Taiwan’s TAIEX Index increased 0.33%. However, Japan’s Nikkei 225 declined 0.05%.

Reuters reported that Asian stock markets hit a two-week high on Wednesday, brushing off a Wall Street tumble and a drop in commodity prices after US President Donald Trump abruptly cancelled talks with lawmakers on coronavirus-relief spending plans.

Trump broke off talks with Democrats in a tweet, saying that negotiations will stop until after the election, when he promised a major stimulus bill, it said.

Lam Jian Wyn