KLCI remains shaky as investors weigh second pandemic wave, US-China trade tensions, 1Q20 GDP data

KLCI remains shaky as investors weigh second pandemic wave, US-China trade tensions, 1Q20 GDP data
-A +A

KUALA LUMPUR (May 12): The FBM KLCI remained shaky at mid-morning as a confluence of events, namely fears of a second pandemic wave, US-China trade tensions and the expectations of disappointments in the 1Q20 GDP data to be released on May 13, kept investors on tenterhooks.

At 10am, the FBM KLCI dipped 2.23 points to 1,380.08.

Losers led gainers by 358 to 295, while 333 counters traded unchanged. Volume was 1.43 billion shares valued at RM779.99 million.

The losers included Nestle (M) Bhd, Petronas Dagangan Bhd, Heineken Malaysia Bhd, Carlsberg Brewery Malaysia Bhd, British American Tobacco (M) Bhd, PPB Group Bhd, Tenaga Nasional Bhd, Fraser & Neave Holdings Bhd and Hong Leong Bank Bhd.

The actives included Careplus Group Bhd, Key Alliance Group Bhd, Green Packet Bhd, Ikhmas Jaya Group Bhd, Hubline Bhd and Key Asic Bhd.

The gainers included Top Glove Corp Bhd, Kossan Rubber Industries Bhd, United Plantations Bhd, Petron Malaysia Refining & Marketing Bhd, Supermax Corp Bhd, Hartalega Holdings Bhd and Comfort Gloves Bhd.

Bloomberg said Asian stocks opened mixed Tuesday as traders assessed the challenges economies face removing restrictions to contain the coronavirus pandemic. The US dollar held gains.

Equity benchmarks fluctuated in Tokyo, and dipped in Sydney and Seoul. Futures in Hong Kong rose. S&P 500 contracts slipped after the index closed flat. New York Governor Andrew Cuomo said businesses including construction, curbside retail, drive-in movies and some recreational activities will reopen this week on a regional basis. Still, Mayor Bill de Blasio said the lockdown in New York City is likely to stretch into June. Treasuries were steady and oil stabilized as output cuts were seen easing storage pressures, it said.

Hong Leong IB Research said following a 14.4% relief rally from its March 19 low of 1,208, the KLCI could experience some degree of profit taking, due to the expectations of disappointments in the 1Q20 GDP data (May 13), 1Q20 results season, potential no-confidence motion against the Prime Minister (on May 18 or the next Parliament sitting July 13-29), collapsing oil prices and a resurgence in US-China trade tensions.

“We expect more range bound consolidation within the 1,352-1,413 band,” it said.