KLCI falls 0.61% on profit-taking consolidation, Budget 2021 voting jitters

TheEdge Tue, Nov 24, 2020 01:05pm - 5 months ago

KUALA LUMPUR (Nov 24): The main index of Bursa Malaysia fell 0.61% before the midday break today on profit-taking consolidation as well as investor jitters ahead of the Budget 2021 vote on Thursday.

Top Glove Corp Bhd fell 6.12% after confirming that it is temporarily shutting down 28 factories in Klang, Selangor following an insurgence of Covid-19 cases among its workers.

At 12.30pm, the FBM KLCI had fallen 9.75 points to 1,587.73.

Market breadth was negative, with 613 losers and 155 gainers, while 760 counters traded unchanged. Trading volume was 5.46 billion shares valued at RM2.41 billion.

The decliners included Nestle (Malaysia) Bhd, Carlsberg Brewery Malaysia Bhd, Petronas Dagangan Bhd, Top Glove, Heineken Malaysia Bhd, Vivocom Intl Holdings Bhd, Scientex Bhd, AEON Credit Service (M) Bhd and GETS Global Bhd.

Top Glove lost 45 sen to RM6.90, valuing it at RM56.55 billion.

The actively traded stocks included AT Systematization Bhd, Pegasus Heights Bhd, Vivocom, Sapura Energy Bhd, Kanger International Bhd, XOX Bhd and Bumi Armada Bhd.

The gainers included Euro Holdings Bhd, Petronas Gas Bhd, Public Bank Bhd, Petra Energy Bhd, KESM Industries Bhd, Asia Brands Bhd and Malaysia Airports Holdings Bhd (MAHB).

Reuters reported that Asian shares climbed today as news that US president-elect Joe Biden was given the go-ahead to begin his White House transition added to an already brighter mood due to progress made in Covid-19 vaccine development and prospects of a speedy global economic revival.

US General Services Administration chief Emily Murphy wrote in a letter to Biden yesterday that he can formally begin the handover process, Reuters reported.

Hong Leong Investment Bank (HLIB) Research said that after enjoying a 146-point rally from the 1,452 low, the KLCI is likely to witness a short-term profit-taking pullback amid grossly overbought technical readings and concerns over the huge amount of economic uncertainties created by spiking Covid-19 infections despite vaccine optimism, expectations of a weaker economy in the fourth quarter of 2020 (4Q20) and weaker corporate earnings in Malaysia (due to the conditional movement control order or CMCO), the peak hit in the 3Q20 results season and the Budget 2021 voting on Thursday.

“Key support is pegged at [the] 1,591-1,579-1,555 levels, while resistance falls on [the] 1,600-1,618-1,640 levels,” it said.

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