Bursa retraces losses after PM's televised address

TheStar Tue, Jan 12, 2021 12:54pm - 1 month ago

KUALA LUMPUR: Bursa Malaysia lost ground on Tuesday on news that the King had declared a state of emergency in the country, but partially recovered after the Prime Minister assured that there will be no curfew and that civilian government will continue.

The FBM KLCI fell as much as 42.48 points to a low of 1,590.71 points in the lead up to Tan Sri Muhyiddin's Yassin's televised address.

There was a breath of relief following the 11am live broadcast in which the Prime Minister announced that the Cabinet and state government will continue to function according to the Federal Constitution and all laws.

The key index recovered most losses to end the morning session 11.77 points lower at 1,605.48.

The domestic market was already facing selling pressure owing to the government's re-implementation of the movement control order, which begins on Wednesday.

Further lockdowns in the country are expected to disrupt the economic recovery although the allowance for the country's five essential economic sectors to operate helped to alleviate some anxiety.

"Unless the market rebounds by the end of trading today, January is expected to be a slow month. Many counters have fallen below their respective 50-day moving averages and it could take until the Chinese New Year period before a positive trend resumes," said a broker.

Twenty-one of the 30 KLCI-linked counters were in the red with financial stocks among the most negatively impacted.

Maybank dropped 12 sen to RM8.07 while Hong Leong Bank dove 66 sen to RM17.42, Public Bank fell 30 sen to RM19.98 and CIMB shed eight sen to RM3.96.

Other leading laggards included Petronas Chemicals down 11 sen to RM7.19 and Tenaga slipping 14 sen to RM10.10.

Glove counters however remained buoyed as investor interest continued to gravitate to healthcare counters amid the growing number coronavirus infections.

Top Glove rose 14 sen to RM6.57, Hartalega climbed 38 sen to RM12.60 and Supermax gained 16 sen to RM7.19.

Top actives on the broader market were Iris up 5.5 sen to 40 sen, Hubline flat at five sen and Lambo unchanged at three sen.

By sector, Bursa Malaysia's financial services index was down 1.9%, energy down 1.55%, construction down 0.5%, plantations down 0.6% and property down 1.4%.

The two positive sectors were technology up 0.8% and healthcare up 0.3%.

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