KUALA LUMPUR (May 4): The FBM KLCI looked poised to end the first trading of May below the 1,400-point threshold as it fell 2.13% at midday amid poor domestic manufacturing data and a slump at regional markets on the back of trade tariff overtures by US President Donald Trump against China.

The Malaysian manufacturing sector came under heavy pressure during April as measures implemented to tackle the spread of Covid-19 caused firms to either suspend production or operate well below full capacity.

The headline IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI) slumped to 31.3 in April from 48.4 in March.

At 12.30pm, the FBM KLCI lost 29.92 points to 1,377.86.

Market breadth was negative with 581 losers and 217 gainers, while 317 counters traded unchanged. Trading volume was 3.19 billion shares.

The top losers included Dutch Lady Milk Industries Bhd, Nestle (M) Bhd, Carlsberg Brewery Malaysia Bhd, Petronas Dagangan Bhd, Heineken Malaysia Bhd, Public Bank Bhd, Petronas Gas Bhd, Hartalega Holdings Bhd, Kuala Lumpur Kepong Bhd, MISC Bhd and Petronas Chemicals Group Bhd.

The actives included UCrest Bhd, Key Asic Bhd, NetX Holdings Bhd, Lambo Group Bhd, Key Alliance Group Bhd, Hibiscus Petroleum Bhd, Hubline Bhd, Sapura Energy Bhd and Comfort Gloves Bhd.

The gainers included Malaysia-listed Hang Seng Index-linked put warrants, Hexza Corp Bhd, Rubberex Corp Bhd and Hengyuan Refining Co Bhd.

Reuters said that in reduced trade, with China and Japan on holiday, US stock futures fell 1.7% and US crude tumbled 7%. The safe-haven US dollar rallied to one-week highs against the risk sensitive Australian and New Zealand dollars.

South Korea's Kospi fell, Hong Kong's Hang Seng returned from a two-session holiday with a 3.5% drop, while Australia's ASX 200 eked out a 0.5% gain, it said.

Kenanga IB Research said Asian stocks mostly closed higher last Thursday (April 30), tracking Wall Street’s overnight performance and positive development on new treatment for Covid-19.

It said back home, the FBM KLCI inched up by 27.48 points or 1.99% to finish at 1,407.78. 

“Chart-wise, the index — following its rebound from previous oversold position to close the gap that was opened during the mid-March market meltdown — could face renewed selling pressures ahead.

“On the chart, our immediate support levels stand at 1,360 (S1) and 1,310 (S2).

“On the upside, we have revised our resistance levels to 1,420 (R1) and 1,445 (R2),” it said.