Downtrend continues on Bursa Malaysia

KUALA LUMPUR: Coming out of a three-day weekend, Bursa Malaysia saw continued selling pressure start as investors searched for positive leads amid the heightened uncertainty and volatility.

At 9.10am, the FBM KLCI was down 3.39 points to 1,498.35, unable to make any headway past the 1,500 pscyhological level.

US stocks had ended last Friday on a negative note after a tumultuous week of trading as investors fled to the sidelines on fears of a the Omicron strain of the Covid-19 virus. Meanwhile, disappointing US jobs data also weighed on the market sentiment, sparking worries over a slowing recovery.

Kenanga Research said in its weekly report that there may be a lull in news flow in the comiing week following the raft of corporate announcements made towards the end of the quarterly earnings reporting season.

"Of greater interest are the development on the new Omicron variant as investors will be inclined to react to any news pertaining to the transmissability and severity of the infections going forward," it said.

Meanwhile, the research firm's technical reading remained negative as the bourse builds on the its losing streak of seven successive weeks.

"There will likely be a bit more downside to go based on the falling momentum indicator.

"On the chart, against a backdrop of extended negative bias, an ensuing market rebound could set the stage for the formation of a double-bottom reversal pattern as the key bellwether may find a floor around its most

recent trough of 1,484, a level that was last tested in early August this year.

"Our immediate support threshold now stands at 1,475 while the support-turned-resistance hurdle is set at 1,510. At 9.06am, the FBM KL was down 2.19 points to 1,499.65, unable to make further headway past the 1,500 psychological level.

On Bursa Malaysia, early decliners included Genetec down 90 sen to RM36.70, Sam Engineering falling four sen to RM20 and MPI dropping 30 sen to RM49.70.

QL Resources was seen jumping 10 sen to RM4.85 while Sptrizer gained nine sen to RM2.04 and TAFI Industries rose eight sen to RM2.37.

Top actives were Impiana Hotels up one sen to 9.5 sen, EA Holdings unchanged at two sen and VS Industry rising six sen to RM1.21.

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Bursa Malaysia , FBM KLCI , equities


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