KUALA LUMPUR (Oct 22): The main index of Bursa Malaysia had pared its gains at the midday break as broader market sentiment tracked the region and turned negative as US stimulus talks dragged.
At 12.30pm, the FBM KLCI was up 0.20 points at 1,492.60. The index earlier rose to a high of 1,500.05.
Losers overtook gainers by 348 to 299, while 741 counters traded unchanged. Trading volume was 3.78 billion shares valued at RM2.11 billion.
The gainers included Nestle (Malaysia) Bhd, Carlsberg Brewery Malaysia Bhd, Hartalega Holdings Bhd, Panasonic Manufacturing Malaysia Bhd, JF Technology Bhd, Kossan Rubber Industries Bhd, Malaysian Pacific Industries Bhd, ViTrox Corp Bhd and TIME dotCom Bhd.
The actively traded stocks included Lambo Group Bhd, Diversified Gateway Solutions Bhd, Iris Corp Bhd, Key Alliance Group Bhd, AT Systematization Bhd, Mah Sing Group Bhd and Luster Industries Bhd.
The decliners included Petronas Dagangan Bhd, Kuala Lumpur Kepong Bhd (KLK), Cycle & Carriage Bintang Bhd, Rubberex Corp (M) Bhd, AEON Credit Service (M) Bhd, BIMB Holdings Bhd, Inari Amertron Bhd and ATA IMS Bhd.
Reuters said Asian shares fell today and US Treasury yields ticked lower as investors fretted over the slow pace of US stimulus talks and a surge in global cases of Covid-19.
Global investor sentiment took a fresh hit over talks to boost the world's largest economy after US President Donald Trump yesterday accused Democrats of being unwilling to craft an acceptable compromise on stimulus, following reports of progress earlier in the day, it said.
Hong Leong Investment Bank (HLIB) Research said following the breakdown to below the critical 200-day simple moving average (200D SMA) support level at 1,496 points, the KLCI is likely to engage in a tug of war between bulls and bears amid rising headwinds ahead of the US presidential election and a resurgence in Covid-19 infections globally, coupled with fluid domestic politics.
“Moreover, prolonged targeted lockdowns amid spiking [new] Covid-19 transmissions in Malaysia may dampen our expectations of a 2H20 (second half of 2020) economic and corporate earnings recovery,” it said.