KLCI pares loss but sentiment stays negative as tech stocks face selling pressure

TheEdge Fri, Feb 26, 2021 12:56pm - 3 years View Original


KUALA LUMPUR (Feb 26): The main index at Bursa Malaysia pared some of its loss at the midday break Friday, against the backdrop of skidding regional markets, while technology-related stocks on Bursa Malaysia came under selling pressure.

The fate of technology stocks mirrored the overnight performance at Wall Street where tech darlings all suffered, with Apple Inc, Tesla Inc, Amazon.com Inc, NVIDIA Corp and Microsoft Corp the biggest drags.

At 12.30pm, the FBM KLCI was down 3.78 points to 1,577.76. The index had earlier slipped to a low of 1,577.53.

Market breadth was negative with 617 losers and 202 gainers, while 716 counters traded unchanged. Trading volume was 6.04 billion shares valued at RM3.29 billion.

The top losers included Malaysian Pacific Industries Bhd, Nestle (M) Bhd, British American Tobacco (M) Bhd, Unisem (M) Bhd, Pentamaster Corp Bhd, Sarawak Oil Palms Bhd, Carlsberg Brewery Malaysia Bhd, Tenaga Nasional Bhd and Hengyuan Refining Company Bhd.

The actively traded stocks included Dagang NeXchange Bhd, XOX Bhd, Puncak Niaga Holdings Bhd, ManagePay Systems Bhd, Dataprep Holdings Bhd, Industronics Bhd and MSM Malaysia Holdings Bhd.

The gainers included Hong Leong Financial Group Bhd, Fraser & Neave Holdings Bhd, UEM Edgenta Bhd, Petronas Gas Bhd, Aeon Credit Service (M) Bhd, Petronas Dagangan Bhd and D&O Green Technologies Bhd.

Reuters said Asian stocks skidded to one-month lows on Friday as a rout in global bond markets sent yields flying and spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets.

The scale of the selloff prompted Australia's central bank to launch a surprise bond buying operation to try and staunch the bleeding, helping yields there come off early peaks, it said.

Hong Leong IB Research said despite rebounding 24 points to 1,581.5 yesterday after tumbling 51 points in the last seven sessions, KLCI is still vulnerable to further consolidation on the back of recent multiple supports breakdown, awaiting more clues on local corporate earnings front and a slump on Wall Street overnight.

“Nevertheless, severe downside risk may be cushioned by an oversold slow stochastic reading, Fed’s dovish outlook, huge US stimulus package, falling Covid-19 infections globally, and the planned vaccination program in Malaysia.

“Crucial supports are situated near 1,535-1,550 levels whilst resistances are pegged at 1,600-1,618,” it said.

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