Friday 29 Mar 2024
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KUALA LUMPUR (Jan 5): The main index of Bursa Malaysia had fallen 0.58% at the midday break today and stayed below the 1,600-point level, tracking weaker regional markets.

At 12.30pm, the FBM KLCI was 9.25 points lower at 1,593.32.

Market breadth remained negative with decliners leading gainers by 475 to 270, while 700 counters traded unchanged. Trading volume was 3.53 billion shares valued at RM2.07 billion.

The decliners included Nestle (Malaysia) Bhd, Kuala Lumpur Kepong Bhd (KLK), Malaysian Pacific Industries Bhd, Petronas Gas Bhd, Petronas Dagangan Bhd, Carlsberg Brewery Malaysia Bhd, Allianz Malaysia Bhd, Hong Leong Bank Bhd (HLB), Fraser & Neave Holdings Bhd (F&N) and Hengyuan Refining Company Bhd.

The actively traded stocks included Ageson Bhd, Yong Tai Bhd, AT Systematization Bhd, Iris Corp Bhd, Top Glove Corp Bhd, DGB Asia Bhd and Inix Technologies Holdings Bhd.

The gainers included Toyo Ventures Holdings Bhd, Euro Holdings Bhd, Greatech Technology Bhd, Supermax Corp Bhd, Ipmuda Bhd, Westports Holdings Bhd and Top Glove.

Reuters said Asian shares fell today amid uncertainty about Senate run-offs in Georgia, which could have a big impact on incoming US President Joe Biden's economic policies.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.34%, pulling back from a record high hit in the previous session. Australian stocks fell 0.44%. Chinese shares erased early losses and rose 0.26%, it said.

Hong Leong Investment Bank (HLIB) Research said in the absence of immediate-term drivers, the KLCI may continue to extend consolidation (weekly support levels: 1,557-1,575; resistance: 1,618-1,640), with downside bias, as investors digest more news flows of the resurgence of the Covid-19 pandemic, vaccine distribution and challenges faced by nations in vaccinating their citizens, coupled with resumption of regulated short selling (RSS).

“Nevertheless, optimism about an economic recovery amid the multiple Covid-19 vaccine breakthroughs, a combination of continuing fiscal and monetary stimulus, the low-interest rate environment and China's firmer economic recovery will continue to underpin interest in the equity market.

“HLIB Research's top picks have a recovery bias (Tenaga Nasional Bhd, RHB Bank Bhd, DRB-Hicom Bhd, MBM Resources Bhd and Focus Point Holdings Bhd), combined with volatility (Bursa Malaysia Bhd), the defensives (Telekom Malaysia Bhd and MRCB-Quill REIT), value (IJM Corp Bhd, Sunway Bhd and Bumi Armada Bhd) and a sold-down pandemic beneficiary (Top Glove),” it said.

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