Bursa draws lower on growing political uncertainty

KUALA LUMPUR: The FBM KLCI fell on Monday amid concerns over more political turmoil ahead of the tabling of Budget 2021.

Prime Minister Tan Sri Muhyiddin Yassin called for a special cabinet meeting this morning to discuss the Agong's decision not to declare a state of emergency.

While the Agong's decision came as a relief to investors, the outlook remained cloudy as it drew into question Muhyiddin's future at the country's helm.

According to Goh Yin Foo, senior analyst at Kenanga Investment Bank research, the Malaysian bourse continued to show indecision.

"While the Malaysian bourse remains in a stalemate at this juncture, the tired bulls appear more vulnerable to a retreat after

raging from the market trough in March this year.

"That being the case, the key FBMKLCI is expected to extend its range-bound pattern with a negative bias, probably swinging from the upper threshold as marked by its 50-day SMA line towards the lower boundary set by its double-bottom formation," he said.

At 12.30pm, the FBM KLCI was down 7.7 points to 1,486.94.

There was selling pressure in market heavyweights including Public Bank, falling 14 sen to RM15.70, Top Glove dropping 22 sen to RM8.48 and Hartalega sliding 32 sen to RM17.

In the spotlight today was the debut of hardware retailer Mr DIY, which rose 14 sen to RM1.74. The counter was the top traded of the morning session with 297.29 million shares exchanging hands..

Unisem was also on investors' radar screens following its earnings announcement, jumping 57 sen to RM4.97.

Global equity sentiment was soft on Monday amid the continued rise of new coronavirus cases in Europe and the US.

China's composite index dropped 0.7% although Hong Kong's Hang Seng rose 0.5% on an advance in its financial firms.

Japan's Nikkei was down 0.1% while South Korea's Kospi fell 0.4% and Australia's ASX200 approached its close slightly in the red.
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Bursa Malaysia , FBM KLCI , equities


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