KLCI heads for 1,300 as bears rage on

  • Markets
  • Monday, 16 Mar 2020

KUALA LUMPUR: The selling continued on Bursa Malaysia from the opening bell, which came as little surprise given the sharp declines seen in global equity markets on Monday.

The negative trading sentiment looked set to continue from the previous week despite the US Federal Reserve's 100-basis-point emergency rate cut that took its borrowing rates to nearly zero.

While Australia's benchmark index slumped as much as 7%, Japan's market has managed to stay afloat despite stock futures earlier showing a sharp 6% retreat.

At 9.09am, the FBM KLCI was down 42.34 points to 1,301.51, staying just ahead of a key psychological level amid the intense selling pressure.

There were 526 declining counters, 55 gainers and 107 unchanged.

In its technical outlook, Kenanga research maintained its negative forecast on the index and lowered its support level given the recent negative performance.

"On the chart, we have lower our support level to 1,310 (S1) (its Sep 2011 low) and 1,240 (S2) (61.8% retracement level from the trough in 2009 to the peak in 2018).

"Conversely, key resistance levels are now seen at 1,450 (R1) and 1,495 (R2)," it said.

The most active counters included VC, unchanged at three sen, SAPURA ENERGY down one sen to 9.5 sen and Pansar up 1.5 sen to 62.5 sen.

Top KLCI heavyweight movements included Petronas Dagangan diving 96 sen to RM18.04, KL Kepong dropping 56 sen to RM18.14, Hong Leong Financial Group falling 48 sen to RM13.02, Tenaga shaving 42 sen to RM11.40 and Public Bank sliding 36 sen to RM14.94.

Glove makers were on the rise led by Hartalega up 15 sen to RM6.21 and Kossan rising 14 sen to RM5.21. Top Glove however slid 19 sen to RM6.05.

In oil markets, prices continued to pressure the US$30 support. Brent fell US$1.49 or 4.1% to US$32.47 a barrel while WTI crude dropped 89 cents or 2.8% to US$30.82 a barrel.

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