Political worries send KLCI below 1,500 again

KUALA LUMPUR: The political worries besetting the country continued to weigh on the stock market, sending the FBM KLCI down below the key 1,500 again.

At 10am, the KLCI lost 11.84 points to 1,488.42. Turnover was 908.35 million shares valued at RM451.11mil. Decliners beat advancers 513 to 184 while 332 counters were unchanged.

Bloomberg reported Asian stocks were steady Wednesday as China’s clampdown on its technology giants and the spread of the delta Covid-19 strain restrained sentiment.

Shares rose in China and Hong Kong, but slipped in Japan, where SoftBank Group Corp. retreated on a potential block of its $40 billion sale of Arm Ltd. to chip company Nvidia Corp. U.S. equity contracts posted modest losses. Company earnings took the S&P 500 to another all-time high overnight.

At home in its market outlook, Rakuten Trade said the prevailing political turmoil in Malaysia should overshadow the best part of trading today.

"Hence, the KLCI which saw strong buying support yesterday may experience a reversal today underscore by the jittery sentiments.

"Therefore, we reckon the index to hover around the 1,490-1,500 range today," it said.

On Tuesday, 11 lawmakers from Umno had retracted their support for the Perikatan Nasional government and Tan Sri Muhyiddin Yassin as Prime Minister and statutory declarations from them had been presented to the Yang di-Pertuan Agong.

Meanwhile, The Star Online reported the Cabinet is expected to have its meeting around noon, with members to attend the meeting physically this time.

This will be the first physical meeting by the Cabinet in months. Due to Covid-19 concerns, the weekly meetings have been held virtually.

Muhyiddin is expected to have an audience with the King at the Istana Negara at 11am. Attorney General Tan Sri Idrus Harun is also expected to seek an audience with the King.

At Bursa, Nestle fell 90 sen to RM132.80, Carlsberg and Henieken 26 sen lower to RM21.14 and RM21.96 abd Panasonic Malaysia 20 sen lower at RM32.30.

Vitrox and MPI lost 28 sen to RM19.70 and RM45.52. However, Genetec rose 54 sen to RM23.54 and MI nine sen to RM4.19.

KL Kepong was down 26 sen to RM19.04 and HLFG 18 sen to RM17.12.

CTOS-CD skidded 17 sen to eight sen.

Kelington warrant-B rose 1.5 sen to 32 sen in active trade. SEAL gained seven sen to 46 sen.

China100-MYR rose 11.5 sen to RM2.10, Scientex-WC eight sen to RM1.27 and Mercury seven sen to RM1.24.

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