KLCI pares loss, but stays below 1,500 as virus fears and local politics drag

KLCI pares loss, but stays below 1,500 as virus fears and local politics drag
-A +A

KUALA LUMPUR (Feb 26): The FBM KLCI pared some of its loss at mid-morning but remained below the 1,500-point level as fears of a coronavirus pandemic rattled global markets, while domestic political uncertainties also clouded investor sentiment at Bursa Malaysia.

At 10am, the FBM KLCI was down 8.18 points to 1,492.70. The index had earlier fallen to a low of 1,485,24.

Losers led gainers by 437 to 170, while 257 counters traded unchanged. Volume was 903.86 million shares valued at RM477.56 million.

The top losers included Dutch Lady Milk Industries Bhd, Carlsberg Brewery Malaysia Bhd, Nestle (M) Bhd, Fraser & Neave Holdings Bhd, Kuala Lumpur Kepong Bhd, Heineken Malaysia Bhd, Hap Seng Consolidated Bhd, Genting Plantations Bhd, Petronas Dagangan Bhd and Hong Leong Financial Group Bhd.

The actives included XOX Bhd, Sapura Energy Bhd, Avillion Bhd, JCY International Bhd, KNM Group Bhd and Radiant Globaltech Bhd.

The gainers included Mega First Corp Bhd, British American Tobacco (M) Bhd, Ornapaper Bhd, BIMB Holdings Bhd, Kossan Rubber Industries Bhd and Batu Kawan Bhd.

Reuters said Asian shares fell on Wednesday as a US warning to Americans to prepare for the possibility of a coronavirus pandemic drove another Wall Street tumble and pushed yields on safe-haven Treasuries to record lows.

The S&P 500 and the Dow Jones Industrial Average both shed more than 3% on Tuesday in their fourth straight session of losses, it said.

Hong Leong IB Research said in the US, it expects the profit-taking activities to persist under the ongoing Covid-19 outbreak, where the unresolved situation could impact the global growth outlook.

“Hence, we believe aviation, casino-related stocks as well as tech giants that have exposure in China may stay volatile with downward bias risk in the near term. The Dow’s trading range will be located around 27,000-28,500.

“Tracking the global indices, especially the sharp drop on Wall Street, coupled with the uncertain political developments in Malaysia, we expect selling interest would still be dominating in the local front.

“However, selected heavyweights could be due for a swift technical rebound (overall mid-to-long term trend is still down) on an intra-day basis after a sharp fall yesterday.

“Should the current political scene remain cloudy, the FBM KLCI will be capped around 1,515-1,530, while support is located around 1,480,” it said.