KLCI back in negative zone after gyrating wildly in morning session

TheEdge Fri, Sep 04, 2020 01:05pm - 8 months ago

KUALA LUMPUR (Sept 4): The FBM KLCI dropped back into negative zone before the midday break — after gyrating from a slump of 1% and clawing back to a positive position earlier — against a backdrop of weaker regional markets.

At 12.30pm, the FBM KLCI was down 2.06 points to 1,513.34. The index had earlier clawed to a high of 1,519.28 after having fallen to a low of 1,498.72 in early morning trades.

Losers led gainers by 469 to 225, while 681 counters traded unchanged. Trading volume was 4.33 billion shares valued at RM2.36 billion.

The top losers included Carlsberg Brewery Malaysia Bhd, Kossan Rubber Industries Bhd, Dupharma Biotech Bhd, CSC Steel Bhd, Heineken Malaysia Bhd, Supermax Corp Bhd, ViTrox Corp Bhd, Nestle (M) Bhd and Kuala Lumpur Kepong Bhd,

The actively traded stocks included XOX Bhd, AE Multi Holdings Bhd, MQ Technology Bhd, Bumi Armada Bhd, Netx Holdings Bhd and Fintec Global Bhd,

The gainers included Hartalega Holdings Bhd, Lysaght Galvanized Steel Holdings Bhd, Ayer Holdings Bhd, Kamdar Group (M) Bhd, Hong Leong Bank Bhd and Sungei Bagan Rubber Company (M) Bhd.

Reuters said Asia's stock markets had their worst session in two weeks on Friday following a tech-led plunge on Wall Street, though gains in safer assets like bonds and dollars were muted as investors awaited U.S. job data to see if it triggers a bigger selloff.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.6% and looked set for a 2.4% weekly loss, its biggest since April, it said.

Hong Leong IB Research reiterated that the KLCI is extend its range bound consolidation mode in a seasonally weak September outing, compounded by domestic political uncertainty (ahead of the Sept 26 Sabah state election), the resurgence of Covid-19 cases in global hotspots, escalating US-China geopolitical tension coupled with a volatile Wall St amplified by worries about a Covid-19 resurgence in the fall and winter, the stalemate in Congress over additional pandemic aid coupled with heightened political uncertainty ahead of the US presidential election on Nov 3.

“Key supports are situated at 1509-1500-1476 whilst resistances are pegged at 1538-1548-1564 levels,” it said.

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