KLCI down 0.72% as Malaysia export fall extends for second month, global virus deaths mount

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KUALA LUMPUR (June 29): The FBM KLCI fell 0.72% at the midday break, as market breadth remained negative in line with regional markets as the rising death toll from the Covid-19 pandemic rattled investors.

Exacerbating the tepid domestic sentiment was Malaysia's exports posting a double-digit fall for two straight months through May, no thanks to the Covid-19 pandemic.

At 12.30pm, the FBM KLCI lost 10.72 points to 1,477.42.

Losers led gainers by 523 to 148, while 585 counters traded unchanged. Trading volume was 3.42 billion shares valued at RM1.19 billion.

The top losers included Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Panasonic Manufacturing Malaysia Bhd, Petronas Dagangan Bhd, PPB Group Bhd, Pentamaster Corp Bhd, KESM Industries Bhd, Hong Leong Financial Group Bhd and Yinson Holdings Bhd.

The actives included AT Systematization Bhd, Vsolar Group Bhd, Anzo Holdings Bhd, Lambo Group Bhd, Sapura Energy Bhd, KNM Group Bhd, KUB Malaysia Bhd and Minetech Resources Bhd.

The gainers included Ajinomoto (M) Bhd, Supermax Corp Bhd, United Malacca Bhd, Allianz Malaysia Bhd, Top Glove Corp Bhd, Nestle (M) Bhd, Batu Kawan Bhd, Comfort Gloves Bhd, Gamuda Bhd and Time Dotcom Bhd.

Reuters wrote Asian share markets began the week with a cautious tone on Monday as the relentless spread of the coronavirus finally made investors question their optimism on the global economy, benefiting safe harbour bonds and the US dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.6% and further away from a four-month top hit last week. Japan's Nikkei shed 1.3% and Chinese blue chips dip 0.6%, it said.

Kenanga Research said the benchmark FBM KLCI dropped 19.1 points or 1.3% to close at 1,488 last week.

It said that technically speaking, the FBM KLCI will probably be in a correction mood in the absence of fresh catalysts.

“Using Fibonacci retracement lines as a gauge, the near-term support levels are identified at 1,445 (S1) and 1,400 (S2) while our resistance barriers are set at 1,530 (R1) and 1,570 (R2),” it said.