Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 12): The FBM KLCI opened lower today before extending losses on bargain hunting after rising yesterday amid easing concerns on the outbreak of the 2019 novel coronavirus, which is now officially known as the Corona Virus Disease (COVID-19). Asian shares and US stock futures rose.

At Bursa Malaysia today, the KLCI opened down 0.46 point at 1,551.02 at 9am before falling one point to 1,550.48 at 9:05am. Bursa top decliners included KESM Industries Bhd and Perak Corp Bhd.  

Yesterday, the KLCI closed up 8.68 points or 0.56% at 1,551.48. 

Today, analysts appeared optismistic on Malaysian share trades after they noted buying interest in local equities.
 
"Buying interest was noted throughout the session at this juncture as market participants could be looking beyond the novel coronavirus outbreak and trading higher prior to the full-blown February reporting season," Hong Leong Investment Bank Bhd wrote in a note today. 
 
"Nevertheless, given selected factories in China are being shut on an extended mode, it may be a disruption to global value chain and traders are advised to look out for selling into strength strategy in the short- to mid-term," Hong Leong said. 

Globally, Reuters reported that Asian shares and Wall Street futures nudged higher on Wednesday amid hopes the worst of the coronavirus in China may have passed, although prevailing uncertainty about the outbreak has kept investors wary. It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1%. It was reported that Australian shares were up 0.27%, while Japan's Nikkei stock index rose 0.45%, 

"The global mood brightened after China's senior medical adviser said on Tuesday the number of new coronavirus cases was falling in some provinces and forecast the epidemic would peak this month. The number of new cases in Hubei, the province at the epicentre of the outbreak, was 1,068 as of Tuesday, down from a peak of over 3,000 new cases on Feb 4, and the lowest number of new infections since Jan 31," Reuters reported.

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