KUALA LUMPUR (July 28): Political headwinds and persistent rise in the number of Covid-19 infections continue to bog down the stock market.

The FBM KLCI closed almost flat amidst cautious sentiments as it ended 0.79 points or 0.05% lower at 1,515.39, after trading at between 1,509.81 and 1,516.35.

Rakuten Trade Research vice-president Thong Pak Leng said Malaysian equity market sentiments continued to be affected by domestic political uncertainty and high Covid-19 cases.

“People are just afraid it will drag too long and lead to a more difficult economic recovery,” he told theedgemarkets.com, adding that he expects the benchmark index to be range bound in the near term.

Malaysia’s daily Covid-19 cases jumped to an all-time high of 17,405 today, compared with 16,117 yesterday. The previous record high of new cases was 17,045 posted on Sunday (July 25).

Meanwhile, TA Securities said in a note today that blue chips closed slightly higher yesterday, despite heavy losses in the region due to the sharp fall in China's major internet companies due to the government's clampdown.

“Concerns over the local political and Covid situation should see continuation of selling on strength activities, unless vaccinations pick up at a strong pace and infections dwindle. If cases are down it will lead to improvement in buying momentum and trading sentiments,” it said.

On the index, it said the immediate support remains at 1,509, followed by 1,500, while immediate resistance levels are at 1,552 with 1,580 and 1,600 as stronger resistance points.

Overall market breadth was negative with 509 counters ending the day in the red, versus 411 gainers and 459 that were unchanged. A total of 3.65 billion securities were traded at a value of RM2.16 billion.

Among the top losers were Genetec Technology Bhd (down 98 sen or 4.8% to RM19.42), Nestle (Malaysia) Bhd (down 80 sen or 0.6% to RM133), Fraser & Neave Holdings Bhd (down 70 sen or 2.75% to RM24.80).

Top gainers included BIG Industries Bhd and Hwa Tai Industries Bhd, which hit limit-up today. BIG Industries surged 37 sen or 29.6% to RM1.62; Hwa Tai jumped 29.5 sen or 38.06% to RM1.07. Panasonic Manufacturing Malaysia Bhd, which was up 30 sen or 0.93% to RM32.68, was also among the top gainers.

XOX Bhd, which saw 118.37 million shares changed hands, was the most actively traded stock today.

Regional markets were mixed today.

Reuters reported that shares in Chinese exchanges trimmed earlier losses in volatile trade as the state-run media called for calm following a wild rout triggered by investors’ worries over tighter government regulations on internet companies.

China’s Shanghai Composite Index ended 0.58% lower at 3,361.59, after falling as much as 2%. Japan’s Nikkei 225 index also finished 1.39% lower at 27,581.66.

Meanwhile, South Korea’s Kospi index closed 0.13% higher at 3,236.86; Hong Kong’s Hang Seng ended 1.54% higher at 25,473.88.