Low liners on Bursa see greater selling pressure

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KUALA LUMPUR (Oct 26): Low liners across Bursa Malaysia saw greater selling pressure on bearish technical momentum. 

As of 10.56am today, the FBM ACE Index was the biggest loser among the 29 indices on the local bourse. It was down by 3.15% or 334.29 points at 10,272.48.

Meanwhile, the FBM Small Cap index was trading 0.98% or 130.96 points lower at 13,282.70. It was the seventh-highest decliner among Bursa’s indices as at the time of writing.

Meanwhile, the FBM KLCI was down by 0.71% or 10.56 points at 1,484.08.

It is worth noting that only five indices were exhibiting any form of gains. The indices were the REIT Index, Plantation Index, Technology Index, FBM Palm Oil Plantation-NC and FBM Asian Palm Oil Plantation (RM) (FBMAPMYR).

Overall market breadth was negative as well, with 725 counters exhibiting declines, 383 counters trading unchanged and only 195 counters displaying gains.

In terms of trading volume, 2.97 billion shares worth RM2.08 billion were traded as at the time of writing.

Meanwhile, in terms of actively traded low liners, Vsolar Group Bhd, XOX Bhd and Kanger International Bhd topped the list.

Vsolar saw 158.71 million shares done, XOX had 53.69 million of its shares transacted and Kanger International saw 320.66 million shares traded.

Top value losers among ACE market firms included Careplus Group Bhd, Greatech Technology Bhd, ES Ceramics Technology Bhd, Focus Dynamics Group Bhd and HLT Global Bhd.

In particular, Careplus declined by 4.5% or 17 sen to RM3.61, while Greatech was down 2.11% or 17 sen at RM7.89.

ES Ceramics concluded the first half of the trading day 11.89% or 8.5 sen lower at 63 sen, while Focus Dynamics was 8.07% or 6.5 sen lower at 74 sen. HLT was down by 2.47% or four sen at RM1.58.

TA Securities noted that the bearish technical momentum had worsened following last Friday’s sell-off due to developments surrounding a possible emergency at that time, which placed further downward correction that could have been expected this week.

“Nonetheless, given that the domestic political situation is likely to maintain the status quo due to the declaration of an emergency which triggers the suspension of Parliament and prevents any objections to Budget 2021, the further sharp correction should encourage bargain hunters to accumulate for a recovery going forward," the research house said then.

"We expect healthcare and technology-related sectors to continue to outperform the broader market,” it noted.

PublicInvest Research said that the FBM KLCI still remained under selling pressure.

“At this juncture, the index is running the risk of trending downward towards subsequent support levels should movement in the near term not be sustainable above its immediate support [level] of 1,485.

"Support levels of the index are at 1,485, 1,455 and 1,430, while the resistance levels are at 1,515, 1,551 and 1,580,” it said.

Surin Murugiah