KUALA LUMPUR (Jan 5): The main index of Bursa Malaysia had fallen 0.58% at the midday break today and stayed below the 1,600-point level, tracking weaker regional markets.

At 12.30pm, the FBM KLCI was 9.25 points lower at 1,593.32.

Market breadth remained negative with decliners leading gainers by 475 to 270, while 700 counters traded unchanged. Trading volume was 3.53 billion shares valued at RM2.07 billion.

The decliners included Nestle (M) Bhd, Kuala Lumpur Kepong Bhd, Malaysian Pacific Industries Bhd, Petronas Gas Bhd, Petronas Dagangan Bhd, Carlsberg Brewery Malaysia Bhd, Allianz Malaysia Bhd, Hong Leong Bank Bhd, Fraser & Neave Holdings Bhd and Hengyuan Refining Company Bhd.

The actively traded stocks included Ageson Bhd, Yong Tai Bhd, AT Systemization Bhd, Iris Corp Bhd, Top Glove Corp Bhd, DGB Asia Bhd and Inix Technologies Bhd.

The gainers included Toyo Ventures Bhd, Euro Holdings Bhd, Greatec Technology Bhd, Supermax Corp Bhd, Ipmuda Bhd, Westports Holdings Bhd and Top Glove.

Reuters said Asian shares fell on Tuesday amid uncertainty about Senate runoffs in Georgia, which could have a big impact on incoming U.S. President Joe Biden's economic policies.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.34%, pulling back from a record high hit in the previous session. Australian stocks fell 0.44%. Chinese shares erased early losses and rose 0.26%, it said.

Hong Leong IB Research said in the absence of immediate-term drivers, KLCI may continue to extend consolidation (weekly supports: 1557-1575; resistances 1618-1640) with downside bias, as investors digest more news flows about the resurgence of Covid-19 pandemic, vaccine distributions and challenges faced by nations in vaccinating their citizens coupled with the resumption of RSS.

“Nevertheless, optimism on economic recovery amid the multiple Covid-19 vaccine breakthroughs, a combination of continuing fiscal and monetary stimulus, the low-interest rates environment and China's firmer economic recovery will continue to underpin interests on the equity market.

“HLIB Research's top picks have a recovery bias (Tenaga Nasional Bhd, RHB Bank Bhd, DRB-Hicom Bhd, MBM Resources Bhd and FocusPoint Group Bhd) combined with volatility (Bursa Malaysia Bhd), defensives (Telekom Malaysia Bhd, MQ REIT), value (IJM Corp Bhd, Sunway Bhd, Bumi Armada Bhd) and sold down pandemic beneficiary (Top Glove Corp Bhd),” it said.