Bursa slumps, tech stocks down after overnight fall on Wall St

TheStar Fri, Mar 19, 2021 09:30am - 1 month ago


KUALA LUMPUR: Bursa Malaysia started Friday on a weak note as investor sentiment was impacted by the overnight tumble on Wall Street and taking the hit were tech and chip makers.

At 9.16am, the KLCI was down 1.55 points or 0.1% to 1,626.44. Turnover was 980.35 million sharers valued at RM452.66mil. The broader market was weaker at decliners beat advancers three to one or 500 losers to 167 gainers while 358 counters were unchanged.

Asian stocks weakened after US shares fell from a record, oil slumped and Treasury yields touched the highest levels in more than a year as the Federal Reserve’s tolerant stance on inflation unnerved investors, Bloomberg reported.

Shares opened lower in Japan, South Korea and Australia. US futures edged higher, however, after a bruising session in which rising yields dented demand for technology shares. The Nasdaq 100 Index tumbled 3.1% and the S&P 500 Index fell 1.5%.

Concerns over Covid-19 cases in Europe also sapped risk appetite and helped pummel oil prices, Reuters reported.

Brent crude futures settled down $4.72, or 6.9%, at $63.28 a barrel, while U.S. crude oil futures settled at $60 a barrel, down $4.60, or 7.1%.

At Bursa on Thursday, foreign funds were net buyers at RM9.5mil and local retail investors at RM59.4mil but local funds remained net sellers at RM68.9mil.

On the market strategy for Friday, TA Research continues to advocate sell on strength or take profit on key banking stocks, and switch to key gaming and technology stocks like Genting, Genting Malaysia, Aemulus, Globetronics, Inari, MPI, SKP Resources, Unisem and VSI for recovery upside, given reopening optimism and strong global adoption of digitalisation.

On the index, tougher profit-taking resistance levels will be at 1,640,1, 660 and 1,680. Key chart supports cushioning downside will be from the rising 10-day moving averages at 1,622, then 1,600, followed by the 100-day and 200-day moving averages at 1,594 and 1,566, respectively.

MPI fell RM1.32 to RM36.98, Vitrox 30 sen to RM14.60, Unisem 21 sen to RM7.40, KESM 16 sen to RM11.98, Kobay 14 sen to RM4.76 while Genetec was down 13 sen to RM4.81.

PMB Tech rose 13 sen to RM6.08.

Consumer stocks fell with Heineken down 34 sen to RM26.24, Carlsberg 20 sen to RM24 and Genetec 13 sen to RM4.81.

Weak crude oil prices saw Hengyuan fall 20 sen to RM5.54.

G3 Global jumped 31 sen to RM1.75 while CCB extended its gains by 23 sen to RM2.41.

Supermax climbed nine sen to RM4.31 and Maxis six sen to RM4.69.

Hock Seng Lee edged up seven sen to RM1.05 after it bagged a RM130.7mil contract to construct the proposed Leadership Training Institute for the Sarawak Civil Service in Kuching.






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