KLCI pares loss, sentiment stays tepid as local politics and CMCO weigh, regional markets drift

KLCI pares loss, sentiment stays tepid as local politics and CMCO weigh, regional markets drift
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KUALA LUMPUR (Oct 13): The main index of Bursa Malaysia pared some of its loss in the mid-morning, but trading was lacklustre as local issues appeared to weigh on investor sentiment, while regional markets drifted.

Domestic politics are likely to take the centre stage today when opposition leader Datuk Seri Anwar Ibrahim meets with the King to present his claims for taking over the premiership from Prime Minister Tan Sri Muhyiddin Yassin.

Also playing a crucial role will be the conditional movement control order (CMCO) that will be in effect from today (Oct 13) to Oct 26 in Sabah, and from tomorrow (Oct 14) to Oct 27 in Putrajaya, Selangor and Kuala Lumpur.

At 10am, the FBM KLCI was down 2.12 points to 1,516.31. The index earlier dropped to a low of 1,513.66.

Losers led gainers by 339 to 300, while 389 counters traded unchanged. Trading volume was 1.2 billion shares valued at RM855.26 million.

The top losers included Dutch Lady Milk Industries Bhd, PPB Group Bhd. Malaysia Airports Holdings Bhd (MAHB), Allianz Malaysia Bhd, IJM Plantations Bhd, MISC Bhd, Malayan Banking Bhd (Maybank) and Hap Seng Consolidated Bhd.

The actively traded stocks included Advance Synergy Bhd, Hoh Wah Genting Bhd, MESB Bhd and Yong Tai Bhd.

The gainers included Malaysian Pacific Industries Bhd, Rubberex Corp (M) Bhd, Supermax Corp Bhd, Nestle (Malaysia) Bhd, Panasonic Manufacturing Malaysia Bhd and Comfort Gloves Bhd.

Bloomberg said Asian stocks drifted today as investors mulled a surge in US technology shares as the American election campaign continued.

The US dollar and Treasuries advanced, it reported.

JF Apex Securities Research said US markets rose overnight amid optimism about the coronavirus stimulus package and upcoming corporate earnings announcements.

It said that earlier, European stocks climbed after China's central bank announcement on shorting the yuan and there was progress in the US stimulus package.

“On the local market, the KLCI tumbled 11.92 points to 1,518.43.

“Following the positive performance on Wall Street, the KLCI could remain buoyed with resistance at 1,550 points,” it said.