KLCI pares loss but stays below 1,500 threshold as regional markets slump

KLCI pares loss but stays below 1,500 threshold as regional markets slump
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KUALA LUMPUR (Sept 9): The FBM KLCI pared some of its loss at the midday break but stayed below the 1,500-point threshold as regional markets slumped.

At 12.30pm, the FBM KLCI lost 23.61 points to 1,495.71. The index had earlier slumped to a low of 1,490.53.

Market breadth was negative with 629 losers and 137 gainers, while 616 counters traded unchanged. Trading volume was 4.63 billion shares valued at RM2.54 billion.

The top losers included Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Supermax Corp Bhd, Fraser & Neave Holdings Bhd, Petronas Dagangan Bhd, Nestle (M) Bhd, Batu Kawan Bhd, Malaysian Pacific Industries Bhd, Top Glove Corp Bhd and Panasonic Manufacturing Malaysia Bhd.

The actively traded stocks included XOX Bhd, Gets Global Bhd, Lambo Group Bhd, Evergreen Fibreboard Bhd, Vsolar Group Bhd and Top Glove.

The gainers included Gets Global, KLCC Property Holdings Bhd, Public Bank Bhd, United Malacca Bhd, British American Tobacco (M) Bhd, Sungei Bagan Rubber Company (Malaya) Bhd, Apex Healthcare Bhd and Magni-Tech Industries Bhd.

Reuters said Asian shares fell on Wednesday and oil prices hit lows not seen since June after a rout of technology shares sank Wall Street for a third consecutive day and a major drugmaker delayed testing of a coronavirus vaccine.

MSCI's broadest index of Asia-Pacific shares outside Japan slid 1.12%. Australian stocks dropped 2.24%, while shares in China fell 1.16%.

Hong Leong IB Research said there is no change to its short-term view on Bursa Malaysia, i.e. extended consolidation with major supports near 1,507-1,494-1,476 zones, ahead of the monetary policy committee meeting on Sept 10, domestic political uncertainty (with focus on the Sept 26 Sabah state election), a resurgence of Covid-19 cases in Malaysia and global hotspots (especially during the fall/winter), escalating US-China geopolitical tension and ongoing Wall Street’s correction.

“If there is any residual strength from the current rebound, we expect the congested resistances 1,556-1,564 to keep a lid on the upside.

“In wake of the concern of potential resurgence of Covid-19 cases in global hotspots (as we approach the fall/winter) and news that nine drugmakers working on coronavirus vaccines publicly pledged on Tuesday to prioritize safety and uphold rigorous scientific standards as concerns mount of political pressure to bring a vaccine to market before the Nov 3 US presidential election, appetite on glove stocks may be revived as valuations become more palatable after recent selldown.

“HLIB top Buys are Top Glove, Hartalega and Kossan,” it said.