Bursa slips as CMCO weighs on investor sentiment


“We lower our 2020F GDP growth forecast to -4.4% from -4.0% to account for the CMCO and data disappointments in July-August impacting 3Q GDP forecast," CGS-CIMB Research said.

KUALA LUMPUR: Bursa Malaysia got off on a muted start on Tuesday as investor sentiment was impacted by the two-week conditional movement control order (CMCO) for Selangor, Putrajaya, Kuala Lumpur (KL) and Sabah as the government seeks to stamp out the Covid-19 pandemic.

At 10.09am, the FBM KLCI was down 2.8 points or 0.18% to 1,515.63. Turnover was 1.39 billion shares valued at RM959.02mil. There were 323 gainers, 341 losers and 395 counters unchanged.

Bloomberg reported Asian stocks drifted Tuesday as investors mulled a surge in U.S. technology shares and the American election campaign continued. The dollar and Treasuries advanced.

Australian shares outperformed, while those in Japan and South Korea were little changed. S&P 500 futures dipped after technology leaders including Amazon.com Inc., Apple Inc. and Twitter Inc. helped extend stock gains into a fourth day.

Meanwhile, CGS-CIMB Equities Research said the CMCO would have an impact on the Malaysian economy.

“We lower our 2020F GDP growth forecast to -4.4% from -4.0% to account for the CMCO and data disappointments in July-August impacting 3Q GDP forecast.

“This news will dampen market sentiments, in our view, on concerns that corporate earnings recovery could disappoint due to lower consumer spends, ” it said in its strategy report.

CGS-CIMB Research said the affected states collectively accounted for 46.6% of Malaysia’s GDP in 2019, i.e. Selangor 24.2%, KL and Putrajaya 16.4%, and Sabah 6.0%.

Dutch Lady fell 38 sen to RM38 and Hap Seng nine sen to RM7.24, MISC also nine sen to RM6.90, Allianz eight sen to RM13.76 and Choo Bee 7.5 sen to 97.5 sen.

Plantations fell with PPB Group down by 20 sen to RM19, SOP nine sen to RM3.57 and IJM Plantations seven sen to RM1.62.

MESB rallied 12.5 sen 47.5 sen and its warrants 11 sen to 32 sen in very active trade.

Among the glove makers, Rubberex gained 42 sen to RM6.90 and Supermax 30 sen to RM10.26.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

   

Did you find this article insightful?

Yes
No

Next In Business News

OPEC+ yet to find compromise on oil policy for 2021
World's largest wine maker to redirect wine, cut costs after China tariffs
N.Korea's Kim stresses economic policies at a politburo meeting
Biggest Mideast mobile operator’s CEO quits after two years
Zafrul: My focus is on country's economic recovery, not politics
ASNB declares 3.32 sen income distribution for Imbang 1
Tesla FOMO fires up Wall Street’s $300b custom-index boom
At-home shoppers drive record online sales
BoE's Haldane sees inflation risks as economies bounce back
Windfall tax on glove makers will send wrong signal to investors: Zafrul

Stories You'll Enjoy