KUALA LUMPUR: Blue chips fell more than 40 points early Monday when the stock market resumed trading after Pakatan Harapan's shocking victory in last Wednesday's defining 14th General Election.
The KLCI fell 40 points at the start but managed to reduce its losses as local funds stepped in to pick up oversold counters due to the knee-jerk reaction.
At 9.09am, the KLCI was down 24.69 points or 1.34% to 1,821.82. Turnover was 449.98 million shares valued at RM453.39mil. There were 232 gainers, 331 losers and 140 counters unchanged.
Kenanga Research said despite short-term concerns over the government's fiscal position should the Goods and Services Tax be abolished; it is hopeful that the victory of the people will enhance the prospects of Malaysia by strengthening key government institutions over the long-run.
“We maintain our FY18E/FY19E earnings growth estimates for KLCI at +6.1%/+6.0%. We also maintain our end-2018 index target of 1,950.
“As such, despite a potential but limited downside after the Bursa was closed for three trading days, any weaknesses are considered good buying opportunities,” it said.
The ideal “Buy On Weakness” (B.O.W.) zone ranges between 1,830 and 1,795.
Infastructure-related companies fell with George Kent skidding RM1.18 to RM2.76, Gamuda lost 86 sen to RM4.24 and Gabungan AQRS lost 48 sen to RM1.12. Tolled road operator Litrak lost 75 sen to RM4.90.
MAHB fell 86 sen to RM7.99, My EG 77 sen to RM1.81, Axiata 46 sen to RM4.83. AirAsia
fell AirAsia lost 21 sen to RM3.49.
surged 8.5 sen to 75.5 sen in active trade.
Nestle jumped RM8.10 to RM143.79, BAT RM3 to RM25.70 whiile F&N gained 84 sen to RM35.34.
Opcom jumped 29.5 sen to 90 sen, Vertice 24 sen to RM1.07 and Country Heights 22 sen to RM1.30.
Public Bank gained 26 sen to RM24.14.