KUALA LUMPUR (Jan 28): The FBM KLCI pared some of its loss at mid-morning but was still 1.45% in the red, tracking regional markets.
At 10am, the FBM KLCI was down 22.60 points to 1,550.21. The index had earlier fallen to a low of 1,545.63.
Losers thumped gainers by 710 to 112, while 151 counters traded unchanged. Volume was 1.08 billion shares valued at RM645.62 million.
The top losers included Nestle (M) Bhd, Dutch Lady Milk Industries Bhd, Fraser & Neave Holdings Bhd, Heineken Malaysia Bhd, Petronas Dagangan Bhd, Malaysia Airports Holdings Bhd, Carlsberg Brewery Malaysia Bhd, KESM Industries Bhd, British American Tobacco (M) Bhd and MISC Bhd.
The actives included Priceworth International Bhd, Careplus Group Bhd, Supermax Corp Bhd, Bumi Armada Bhd, Sapura Energy Bhd, Avillion Bhd and Comfort Gloves Bhd.
The gainers included Top Glove Corp Bhd, Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, Supermax, Adventa Bhd, Careplus, IHH Healthcare Bhd and YSP Southeast Asia Bhd.
Reuters said Asian shares slipped again on Tuesday as China took more drastic steps to combat the coronavirus, while bond yields fell globally on expectations central banks would need to keep stimulus flowing to offset the likely economic drag.
As the death toll reached 81 and the virus spread to more than 10 countries, including France, Japan and the United States, some health experts questioned whether China can contain the epidemic, it said.
Hong Leong IB Research commenting on Wall Street said on the back of the decisive breakdown below support trendline (from its nadir at 25,743 on 3 Oct), the 1st major stock market pullback since October may be under way and with more headwinds on Dow in the short term with traders seemingly reluctant to make significant moves due to fears of the coronavirus outbreak could grow into a global pandemic.
“Crucial supports are situated at 27600-28300 whilst resistances are at 28,700-29,300 levels.
On the local bourse, it said as global markets were roiled by the deadly and contagious Wuhan coronavirus outbreak, the KLCI is envisaged to lock in an extended consolidation, with lowered supports at 1548-1564 levels.
“Only a decisive breakout above 1583 will arrest the fall and trigger a technical rebound to 1600 zones.
“Overall, the appetite on gloves and healthcare-related companies’ would stay firm whilst airlines, tourism and retailing stocks could witness further selling pressures.
“Meanwhile, technology stocks would remain in focus after a strong Intel results last week, with some notable names on tap such as Apple (Tuesday), Microsoft and Facebook (Wednesday),” it said.