KLCI slumps 1.3% in line with regional fall, poor economic outlook

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KUALA LUMPUR (June 18): The FBM KLCI slumped 1.32% at the midday break today in line with the regional fall as fresh coronavirus cases rattled markets, while the Asian Development Bank (ADB) forecast Malaysia’s economy to contract this year.

Malaysia’s gross domestic product growth is forecast to contract 4% this year and grow 6.5% in 2021, in line with the region, according to the ADB’s Asian Development Outlook 2020 Supplement (ADO 2020).

At 12.30pm, the FBM KLCI lost 20.19 points to 1,506.13.

Market breadth was negative with 477 losers and 162 gainers, while 608 counters traded unchanged. Trading volume was 3 billion shares valued at RM1.86 billion.

The decliners included Nestle (M) Bhd, Top Glove Corp Bhd, Supermax Corp Bhd, Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, Bursa Malaysia Bhd, Hong Leong Financial Group Bhd, Time Dotcom Bhd, Kuala Lumpur Kepong Bhd and MISC Bhd.

The actives included MQ Technology Bhd, Minetech Resources Bhd, PDZ Holdings Bhd, MSM Malaysia Holdings Bdh, UCrest Bhd, Prestariang Bhd, Sapura Energy Bhd and My EG Services Bhd.

The gainers included SAM Engineering & Equipment (M) Bhd, Carlsberg Brewery Malaysia Bhd, PMB Technology Bhd, ViTrox Corp Bhd, Kumpulan Powernet Bhd, Heineken Malaysia Bhd and Sarawak Consolidated Industries Bhd.

Bloomberg said Asian stocks and US equity futures dropped, while the yen and Treasuries advanced, as optimism over policy stimulus gave way to recovery concerns caused by rising infection numbers in some locations.

Kenanga Research said that yesterday, Asian stock markets ended mixed on a resurgence of global Covid-19 cases and geopolitical tensions between China and India.

It said back home, the FBM KLCI rose 8.61 points or 0.57% to finish at 1,526.32.

“Following the formation of a 'Golden Cross', the index managed to close the gap that was opened during the mid-March market meltdown, which sees it now trading above all of its key-SMAs.

“On the chart, our support levels are identified at 1,450 (S1) and 1,410 (S2).

“On the upside, our resistance levels are at 1,530 (R1) and 1,590 (R2),” it said.