KLCI opens lower as global markets rattled by rising virus cases

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KUALA LUMPUR (Oct 27): The main index at Bursa Malaysia opened lower Tuesday, tracking weaker regional markets as coronavirus cases climbed exponentially, both foreign and domestic.

At 9.05am, the FBM KLCI dipped 2.36 points to 1,492.25.

The early decliners included Fraser & Neave Holdings Bhd, Carlsberg Brewery Malaysia Bhd, Sime Darby Plantation Bhd, Petronas Gas Bhd, ViTrox Corp Bhd, Pentamaster Corp Bhd, MISC Bhd, Petronas Chemicals Group Bhd and Allianz Malaysia Bhd.

Bloomberg said Asian stocks looked poised to open weaker Tuesday after US shares tumbled on concern rising coronavirus cases will hurt the global economy and stimulus talks in Washington dragged on.

Treasuries advanced, it said.

Rakuten Trade in its daily market report said US markets fell sharply before rebounding of its lows amidst the surging Covid-19 cases worldwide while the ongoing discussions on stimulus plans drags on dampened sentiment.

It said US futures were marginally higher today as it continues to rebound from the sell-off, nonetheless regional markets are expected to see weaker sentiment taking cue from US markets yesterday.

“On to our local market, we may see some bargain hunting as the KLCI tries to find its way back to the 1,500 level with more clarity and stability in the government.

“Therefore, investors should take the opportunity to bargain hunt for trading opportunities and focus would still largely be on the healthcare related stocks as the CMCO (conditional movement control order) is extended by another two weeks until November 9, hence the gloves, masks PPE (personal protective equipment) related stocks, technology and small mid cap stocks would be the centre of attention,” it said.