Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 24): The FBM KLCI tumbled 2.54% at the midday break today, as the domestic political wrangling kept investors on tenterhooks and index-linked blue chips tanked.

At 12.30pm, the FBM KLCI lost 38.94 points to 1,492.26, the lowest point since Dec 21, 2011's 1,500.91.

Market breadth turned negative with 720 losers and 40 gainers, while 477 counters traded unchanged. Volume was 2.36 billion shares valued at RM2.11 billion.

The top losers included Carlsberg Brewery Malaysia Bhd, Heineken Malaysia Bhd, Dutch Lady Milk Industries Bhd, Kuala Lumpur Kepong Bhd, Ajinomoto (M) Bhd, Panasonic Manufacturing Malaysia Bhd, Public Bank Bhd, PPB Group Bhd, British American Tobacco (M) Bhd and MISC Bhd.

The actives included My EG Services Bhd, Bumi Armada Bhd, Alam Maritim Resources Bhd, Sapura Energy Bhd, XOX Bhd, Iris Corp Bhd, AirAsia Group Bhd, Powerwell Holdings Bhd and Gamuda Bhd.

The gainers included Top Glove Corp Bhd, Hartalega Holdings Bhd, Kossan Rubber Industries Bhd, GHL Systems Bhd and Focus Dynamics Group Bhd.

Reuters said global shares and oil slid on Monday while safe-haven gold surged as the spread of the coronavirus outside China darkened the outlook for world growth with infections and deaths rising in South Korea, Italy and the Middle East.

South Korea put the country on high alert while the number of infections jumped to over 700 and deaths rose to seven. In Italy, officials said a third person infected with the flu-like virus had died, while the number of cases jumped to above 150 from just three before Friday, it said.

Kenanga IB Research said political manoeuvrings by various opposition parties and pro-Tun Dr Mahathir Mohamad factions within Pakatan Harapan to form a new coalition government has raised the political risk in Malaysia.

In a strategy note today, the research house said after a weekend of high level meetings that ended with an audience with the King which left tongues wagging of a new coalition government being formed, no official announcements were made.

“It looks to be status quo for now, but the heightened uncertainties of Malaysia’s political landscape makes the situation an uneasy calm for the stock market.

“Our technical chartist is of the view that with renewed and heightened political anxiety, there is a possibility that the FBM KLCI will break below the key support level of 1,500 (being the first support level).

“The second key support level is 1,470 and possibly falling towards the 1,400–1,450 region. The overhead resistance of 1,570 and 1,600 looks distant for now,” it said.

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