KUALA LUMPUR: Uncertainties about the political situation in the country weighed on investor confidence on Wednesday ahead of the Nov 6 Budget proposals despite the stronger trade data.
At 5pm, the FBM KLCI was down 5.15 points or 0.34% to 1,495.20. Turnover was 4.66 billion shares valued at RM3.44bil. The broader market was weaker with seven decliners to three advancers or 737 losers to 291 gainers and 440 counters unchanged.
Malaysia’s exports in September expanded by a stronger pace of 13.6% to RM88.93bil, far exceeding a Bloomberg survey of a 1.7% increase, as shipments of manufactured products jumped.
Trade surplus in September 2020 surged by 149.3% year-on-year (y-o-y) to RM21.97bil and was the highest trade surplus ever recorded for the month of September.
Meanwhile, the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah has advised all MPs, regardless of party, to stop the political squabbling and give their full support to Budget 2021.
Comptroller of the Royal Household Datuk Ahmad Fadil Shamsuddin said the King stated that Budget 2021 must be passed for the sake of the people and to aid the recovery of the economy ravaged by the Covid-19 pandemic.
At Bursa, Nestle fell RM1.10 to RM140.60, Dutch Lady 68 sen to RM34.72, Carlsberg 34 sen to RM18.66, Heineken 26 sen to RM18.30 and BAT four sen to RM9.95.
LC Titan was among the top losers, skidding 27 sen to RM2.13 with 89.03 million shares done after it posted a weaker set of results.
As for the glove makers, Supermax lost 33 sen to RM9.45, Hartalega 26 sen to RM18.02 and Top Glove 13 sen to RM8.78.
As for banks, Maybank and HL Bank were flat at RM7.07 and RM14.96, Public Bank and CIMB four sen lower at RM15.68 and RM3 while RHB Bank shed one sen to RM4.31.
Oil prices went into reverse, giving up the previous day's gains as a surge in U.S. crude stocks and rising coronavirus infections in the United States and Europe fanned fears of a supply glut and weaker fuel demand, Reuters reported.
Brent crude futures were down $1.20, or 2.9%, at $40 a barrel by 0920 GMT, having climbed nearly 2% on Tuesday. U.S. crude was down $1.49, or 3.7%, at $38.08 after a 2.6% jump the previous day.
Petronas Gas and Petronas Dagangan added two sen each to RM17.30 while Petronas Chemicals was unchanged at RM5.95. Dialog shed one sen to RM3.69.
However, it was not all doom and gloom as QL Resources climbed 26 sen to RM6.50.
Axiata added 20 sen to RM3.04 following an upbeat report from analysts, MAHB advanced 20 sen also to RM4.50 and Latitude Tree 11 sen to RM2.88.
As for plantations, Chin Tek added 13 sen to RM6 and PPB Group 12 sen to RM19.20, IOI Corp five sen to RM4.36 and KL Kepong gained four sen to RM22.40 but Sime Plantation shed two sen to RM4.85.
Among the key Asian markets, the Shanghai Composite rose 0.46% and South Korea’s Kospi gained 0.62% but the Nikkei 225 lost 0.29% and Singapore’s STI skidded 1.17%.
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