KLCI remains under pressure on prospect of extended MCO, weaker crude oil price

KLCI remains under pressure on prospect of extended MCO, weaker crude oil price
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KUALA LUMPUR (April 6): The FBM KLCI remained under pressure at mid-morning as investors weighed the impact of a possible extended movement control order as well as weaker crude oil prices.

Brent crude traded lower by US$2.39 a barrel, or 7%, by 6:16pm EDT (10:16 GMT) after earlier touching a session low of US$30.03 a barrel.

At 10am, the FBM KLCI was down 5.66 points to 1,324.99.

Losers led gainers by 244 to 226, while 302 counters traded unchanged. Trading volume was 1.11 billion shares valued at RM364.03 million.

The top losers included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, PPB Group Bhd, Petronas Dagangan Bhd and Malaysia-listed Hang Seng Index-linked put warrants.

The actives included Hibiscus Petroleum Bhd, Lambo Group Bhd, Bumi Armada Bhd, Sapura Energy Bhd, Velesto Energy Bhd, Minetech Resources Bhd and Hubline Bhd.

The gainers included Dutch Lady Milk Industries Bhd, Heineken Malaysia Bhd, Amway (M) Holdings Bhd, Malayan Cement Bhd, Lingkaran Trans Kota Holdings Bhd, IJM Plantations Bhd, Prolexus Bhd, Hong Leong Industries Bhd and Carlsberg Brewery Malaysia Bhd.

Reuters said oil prices skidded on Monday after Saudi-Russian negotiations to cut output were delayed, keeping oversupply concerns alive, while stocks jumped as investors were encouraged by a slowdown in coronavirus-related deaths and new cases.

In currency markets, sterling fell after British Prime Minister was admitted to hospital following persistent coronavirus symptoms as the pandemic rapidly spreads, it said.

Hong Leong IB Research said with the ongoing Covid-19 outbreak, coupled with further “lockdown” in several countries until at least another one month, economic activities could slow down over the near term.

“Moreover, the sluggish US jobs data could limit the upside potential on Wall Street and the selling pressure could spill over towards stocks on the local exchange.

“Hence, we suggest traders to deploy sell into strength strategy and KLCI could trade in a rangebound mode between 1,270-1,370,” it said.