KUALA LUMPUR: Investors were cautious in early Thursday trade as they worried whether the Budget 2021 proposals would secure majority vote in parliament later in the day.
At 9.24am, the FBM KLCI was down 5.99 points or 0.37% to 1,591.59. Turnover was 1.13 billion shares valued at RM459.96mil. There were 268 gainers, 299 losers and 390 counters unchanged.
Asian shares dipped slightly as the hot run up in global markets took a breather, with investors switching their focus from vaccine hopes to disappointing US jobs data and new Covid-19 lockdowns, Reuters reported.
TA Securities Research said despite economic recovery plays gaining steam, domestic political uncertainty due to doubts over approval in parliament on the passage of Budget 2021 should still cloud market sentiment.
“Overhead index resistance remains at 1,600, with the recent high of 1,613 and the July peak of 1,618 as stronger upside hurdles. Key chart supports stays at the 100-day and 50-day moving averages at 1,544 and 1,524 respectively, ” it said.
At Bursa on Wednesday, foreign funds turned net buyers at RM25.1mil and local retail investors were seen net buying at RM2.9m but local funds were net sellers at RM28mil.
US oil rose for a fifth day as a surprise drop in crude inventories extended a rally driven by hopes that vaccines would end the coronavirus pandemic and revive fuel demand.
Brent was up by 20 cents, or 0.4%, at $48.81 a barrel, after rising around 1.6% in the previous session. West Texas Intermediate crude was up by 14 cents, or 0.3%, at $45.85, having gained 1.8% on Wednesday, according to Reuters.
Among the KLCI stocks, Public Bank fell 30 sen to RM18.62, KL Kepong 16 sen to RM23.40 and Petronas Chemicals eight sen to RM6.73.
F&N was the top loser, down 32 sen to RM31.76 with 1,200 shares done. Euro Holdings lost 16 sento RM1.50, Adventa 13 sen to RM1.96 and Tomypak 10 sen to 75.5 sen.
UEM Edgenta lost nine sen to RM1.88 and IJM Plantation eight sen to RM1.78.
Vivocom tumbled 16 sen to 69.5 sen with 142 million shares done. However, GETS Global put on another 20 sen to RM3.16.