KLCI extends fall as short-selling pressures continue

KUALA LUMPUR: Bursa Malaysia continued its fall amid the selling pressure triggered by the uplifting of the suspension on regulated short-selling yesterday.

At 12.30pm, the FBM KLC dropped 9.25 points to 1,593.32, slipping below the psychological 1,600-point line.

According to Malacca Securities Research, The FBM KLCI has formed another bearish candle as the key index re-tested the daily 60-day exponential moving average.

"With the selling pressure likely to persist, we think that the immedaite support at 1,580 may come into focus, followed by 1,550.

"Any recovery is capped towards the immediate resistances at 1,630-1660," it added.

Leading decliners on the heavyweight index included Maybank down seven sen to RM8.28, Petronas Chemicals shedding 19 sen to RM7.02, Hong Leong Bank diving 28 sne to RM18.10, Petronas Gas dropping 48 sen to RM16.72 and Press Metal sliding 18 sen to RM8.23.

Glove stocks, which had come under intense selling pressure yesterday, showed signs of a rebound.

Top Glove managed to firm up on the announcement of a special dividend, rising 15 sen to RM5.65. Supermax also gained 21 sen to RM5.72.

However, Hartalega slid eight sen to RM10.40.

On the top active list, BCM Alliance dropped 2.5 sen to 33.5 sen, Ages rose two sen to 15 sen and Yongtai added two sen to 32.5 sen.

In global markets, uncertainty over the Senate race in the US weighed on sentiment.

With dual runoff elections in Georgia determining whether the Senate would remain under Republican control. A Democrat win could mean a more substantial 2021 fiscal stimulus package, Reuters reported.

Japan's Nikkei shed 0.4% while China's key index was mostly unchanged.

South Korea's Kospi and Hong Kong's Hang Seng each fell 0.3% while Australia's ASX200 was down 0.2%.
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Bursa Malaysia , FBM KLCI , equities


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