KUALA LUMPUR (July 7): The FMB KLCI slipped 0.1% or 1.48 points, tracking regional market declines as market sentiment continues to be weighed by high Covid-19 cases, besides domestic political issues. The benchmark index settled at 1,530.15 points on market close.

This is the third consecutive day the benchmark index has closed in the red following the start of the Enhanced Movement Control Order or EMCO on July 3 in many parts of Selangor and certain localities in Kuala Lumpur — where new infections remain high —  to contain the Covid-19 pandemic. The index has retreated 0.26% or 4.08 points in the last three days.

Investors are also watching carefully what Bank Negara Malaysia's next move will be as its monetary policy committee meets tomorrow (July 8), amid the current economic climate, according to Areca Capital chief executive officer Danny Wong. “There are no strong catalysts right now for the market to move either way,” he added.

The benchmark index saw 11 counters in the red today — led by Top Glove Corp Bhd, Press Metal Aluminium Holdings Bhd and Genting Bhd — versus 13 gainers  led by Mr DIY Group (Malaysia) Bhd, Hong Leong Financial Group Bhd and IHH Healthcare Bhd. Six other components settled unchanged.

Overall market breadth was negative today with losers exceeding gainers at 568 versus 382, while 464 were unchanged.

Top gainers were Genetec Technology Bhd, Malaysian Pacific Industries Bhd and Nestle Malaysia Bhd. Top losers were headed by Computer Forms (Malaysia) Bhd, Heineken Malaysia Bhd and British American Tobacco (M) Bhd. Top actives were Metronic Global Bhd, Serba Dinamik Holdings Bhd and Pelikan International Corp Bhd.

TA Securities Research pointed out in a note today that given the weak market undertone and buying momentum, the local stock market should stay in a downward bias with most investors staying on the sidelines, pending an improvement in sentiment.

Immediate support for the index stays at 1,520, it said, adding that immediate resistance remains at 1,552, with 1,580 and 1,600 as stronger resistance points.

Regionally, most indices also registered declines. Nikkei 225 finished 0.96% or 276.26 points lower at 28,366.95 points, while the Hong Kong Hang Seng was down 0.4% or 112.24 points at 27,960.62 points. Across the causeway, Singapore’s Straits Times Index finished 1.65% or 52.78 points lower at 3,137.81 points.

Reuters reported that Asian currencies and shares eased today as investors cut risk ahead of the release of the US Federal Reserve's June meeting minutes. “Asian equities fell across the board as market sentiment remained fragile after a mixed Wall Street session,” it wrote.

More to come...