KLCI retreats in line with region as new Covid-19 cases drag sentiment

KLCI retreats in line with region as new Covid-19 cases drag sentiment
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KUALA LUMPUR (June 22): The FBM KLCI retreated in mid-morning today, tracking cautious regional markets as new Covid-19 cases in China as well as some European countries and the Americas dragged investor sentiment.

At 10am, the KLCI was down 2.45 points to 1,504.81. The index had earlier risen to a high of 1,510.17.

Decliners led advancers by 373 to 317, while 352 counters traded unchanged. Trading volume was 1.72 billion shares valued at RM784.32 million.

Top losers included QL Resources Bhd, Carlsberg Brewery Malaysia Bhd, British American Tobacco (Malaysia) Bhd, Oriental Holdings Bhd, Kuala Lumpur Kepong Bhd, Maxis Bhd, YNH Property Bhd, Apex Healthcare Bhd and Tenaga Nasional Bhd (TNB).

Top actives included MQ Technology Bhd, Key Alliance Group Bhd, Minetech Resources Bhd, Iris Corp Bhd, KNM Group Bhd, Green Packet Bhd, AT Systemization Bhd, Careplus Group Bhd and JAG Bhd.

Top gainers included Supermax Corp Bhd, JF Technology Bhd, Hong Leong Financial Group Bhd, Telekom Malaysia Bhd (TM), Top Glove Corp Bhd, Ayer Holdings Bhd and Comfort Gloves Bhd.

Bloomberg said Asian stocks kicked off the week with modest losses as investors mulled the impact of Covid-19 outbreaks in countries from the US to Australia, though US futures recouped much of an early decline.

Hong Leong Investment Bank Research said that after tumbling 38.8 points week-on-week and recording its second weekly decline due to the fluidity of a quick economic recovery as well as the resurgence of Covid-19 infections worldwide, coupled with domestic uncertainties over the uplifting of the short-selling ban post June 30 and a potential snap election in the second half of 2020, the KLCI is likely to stuck in short-term consolidation mode.

“Nevertheless, we expect the start of mid-year window dressing activities to cushion the sell-off with key support at the 1,470-1,490 level, while resistance falls in the 1,514-1,543 zone,” it said.