KLCI set for another weak session as headwinds grow

  • Markets
  • Thursday, 24 Sep 2020

KUALA LUMPUR: The FBM KLCI opened on shaky footing on Thursday as growing political uncertainty and a sell-off in US markets weighed on investor sentiment.

At 9.05am, the FBM KLCI was down 0.65 point to 1,496.83. Reassurances from Prime Minister Tan Sri Muhyiddin Yassin over the status quo in government leadership seemed to have helped soothe investor nerves although the market remained caught in a bearish mood.

"Following the renewed local political uncertainty, coupled with the dour note set by Wall Street overnight, we see the FBM KLCI to endure further volatility," said Malacca Securities Research.

"The lower liners and broader market shares will remain under pressure as sentiment turned dour as of late, while investors will be keeping an eye on the FTSE Russell decision on keeping Malaysia in the World Government Bond Index," it added.

The research house expects the local bourse to remain within the consolidation channel with resistances at 1,515 and 1,555 while support remains at 1,480 and 1,450.

Overnight on Wall Street, the Dow Jones dropped 1.9% as the US Federal Reserve chairman Jerome Powell told congress that further fiscal stimulus was needed to the US economic recovery to continue.

However, hopes dimmed that there will be another round of stimulus in the US in the lead up to the November elections.

Asian markets opened lower following the rout on Wall Street. Japan's Nikkei fell 0.8%, South Korea's Kospi was down 1.2% and Australia's ASX200 dropped 1%.

Meanwhile, stocks seeing heavy trading action on Bursa Malaysia included Lambo unchanged at 3.5 sen, Asvance Synergy down 1.5 sen to 17.5 sen and Sapura Energy up one sen to 27 sen.

Glove counters counted among the early gainers with Hartalega rising 12 sen to RM14.62 and Kossan gaining 10 sen to RM12.

Leading decliners were MPI down 30 sen to RM17.70, KESM falling 26 sen to RM8.02 and UWC sliding 11 sen to RM5.25.
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Bursa Malaysia , FBM KLCI , equities


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