KUALA LUMPUR: Shares of Serba Dinamik hit limit-down in early Monday trade when it resumed trading after a two-day voluntary halt and it affected the broader market sentiment.
The FBM KLCI also skidded on concerns about the impact of the full lockdown on the economy over the next two weeks.
At 9.08am, the KLCI was down 19.12 points or 1.2% to 1,575.32. Turnover was 870.30 million shares valued at RM379.55mil. Decliners hammered advancers more than 12 to one or 834 losers to 68 gainers and 139 stocks unchanged.
Serba Dinamik hit limit-down, fall 48 sen to RM while KPower lost 16 sen to RM1.15 and SCIB 17 sen to 98.5 sen.
Trading of Serba Dinamik shares resumed after a two-day voluntary suspension last week after it was informed by its external auditors, KPMG, on “some matters pertaining to statutory audit.”
StarBiz reported the company says it will go ahead with the motion to change its external auditor KPMG despite calls to stop it from doing so.
Other decliners were Nestle, which fell RM1 to RM135.50, Heineken 60 sen to RM23.20, Carlsberg 50 sen to RM21.50, BAT 40 sen to RM15.40 and F&N 50c to RM26.38.
Other decliners were HLFG, down 62 sen to RM17.72 and refiner Hengyuan 45c to RM5.23,
At Bursa last week, foreign funds were net buyers at RM190.2mil and local retail investors RM147.9mil but local funds were net sellers at RM338.1mil.
On the full lockdown, Kenanga Investment Research said this was similar to MCO1.0 with only essential economic and service sectors allowed to operate for two weeks from June 1 to 14.
Subject to the Health Ministry’s assessment on progress made in curbing the infection, this lockdown is expected to transition into subsequent phases thereafter with restrictions progressively eased.
"Assuming this being the case, the economic impact should be less adverse than last year’s MCO1.0 which lasted 46 days from March 18 to May 3 (before transitioning to EMCO and RMCO).
"Brace for some market weakness ahead, which we view as a buying opportunity. We stick with our 1,710 year-end target for the KLCI," the research house said.