KLCI falls 0.74% as investors weigh ramifications of MCO extension, lower GDP forecasts

KLCI falls 0.74% as investors weigh ramifications of MCO extension, lower GDP forecasts
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KUALA LUMPUR (April 24): The FBM KLCI fell 0.74% at mid-morning today as investor sentiment appeared to be shackled by the ramifications of the Movement Control Order extension until May 12 announced yesterday.

Meanwhile, CGS-CIMB Research and Hong Leong IB Research have both cut their respective gross domestic product growth forecast to -6% for Malaysia this year.

At 10am, the FBM KLCI lost 10.21 points to 1,371.43.

Losers led gainers by 279 to 267, while 267 counters traded unchanged. Trading volume was 1.13 billion valued at RM449.51 million.

The top losers included Nestle (M) Bhd, Petronas Dagangan Bhd, Heineken Malaysia Bhd, Allianz Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, Tenaga Nasional Bhd, Kuala Lumpur Kepong Bhd, Digi.Com Bhd, Hong Leong Financial Group Bhd and KESM Industries Bhd.

The actives included Sanichi Technology Bhd, Tiger Synergy Bhd, Vortex Consolidated Bhd, Hubline Bhd, Land & General Bhd, UEM Sunrise Bhd and AirAsia X Bhd.

The gainers included United Plantations Bhd, Top Glove Corp Bdh, Genting Plantations Bhd, Kossan Rubber Industries Bdh, Adventa Bhd, Hartalega Holdings Bhd and Supermax Corp Bhd.

Bloomberg said Asian stocks slipped Friday as investors weighed signs of progress in the fight against the coronavirus versus data showing the severity of the impact on economies. Oil climbed back above US$17 a barrel.

Japanese shares dipped along with those in South Korea, while Australian equities fluctuated. S&P 500 contracts edged lower after the gauge erased a 1.6% gain in Thursday’s session to end little changed. Gilead Sciences Inc’s antiviral drug remdesivir flopped in its first randomised clinical trial, the Financial Times reported, citing draft documents published accidentally by the World Health Organization. The drug company disputed that characterisation. Treasuries held overnight gains and the dollar was little changed, it said.

Rakuten Trade in its daily market report said it is going to be another interesting day as volatility should dictate trading patterns.

“Wall Street lost some steam towards the end of yesterday’s session as the DJI Average closed on a flat note at around 23,500 having threatened to break the 24,000 level at one time.

“As such, we reckon regional markets may see some volatility today amid some selling pressure.

“Locally, the FBM KLCI’s resilience may be tested today and expect the benchmark index to break the 1,380 level and re-test the immediate support at 1,370,” it said.