FBM KLCI tumbles 20 points, ringgit decline on Parliament dissolution

KUALA LUMPUR: The FBM KLCI tumbled 1.5% after Prime Minister Datuk Seri Ismail Sabri Yaakob announced the dissolution of parliament on Monday to make way for the 15th general election (GE).

The market barometer lost 20.81 points, or 1.48% to 1,385.19 at midday, with 26 of the KLCI component stocks in the red.

The broader market sagged, with decliners outnumbering advancers 742 to 142 while 267 counters were unchanged.

At noon, the ringgit fell 0.49% to 4.6728 against the US dollar.

TA Securities said on the index, immediate overhead resistance on rebound attempts remained at 1,450, then 1,480 and 1,500, followed by 1,512, with a significant hurdle seen from the August high near 1,528.

“Key chart supports are at the recent pivot low of 1,384, with 1,370, 1,350 and 1,323, the 23.6% Fibonacci Retracement (FR) of the 1,207 low of March 2020 to the December 2020 peak of 1,695 level, as stronger supports to cushion this correction leg,” it said.

“Stocks wise, however, key defensive gaming and utility heavyweights such as Genting Bhd, Genting Malaysia, Tenaga and Telekom Malaysia are attractive to bargain on any further dips for rebound upside, while top rubber glove players Hartalega, Kossan Rubber, Supermax and Top Glove should encourage retail participation following the recent strong buying momentum,” TA said.

Meanwhile, Malacca Securities believed all eyes will turn to the upcoming GE15 following the dissolution of parliament announced yesterday.

“The broad market may trade lower given the uncertainties ahead of the GE15, while foreign investors may extend their selling activities since last week. Commodities wise, the crude oil price sustained above US$94 per barrel mark, while the CPO price continued to hover above RM3,750,” it added.

On Bursa Malaysia, Nestle tumbled RM1.40 to RM129.50, Malaysian Pacific Industries shed 98 sen to RM27.40, Kuala Lumpur Kepong eased 64 sen to RM19.76 and Dutch Lady fell 60 sen to RM30.40.

Among the gainers, Batu Kawan gained 20 sen to RM20.60, Hextar Technologies added 20 sen to RM5.50, Paragon rose 17 sen to RM1.60 and PETRONAS Dagangan climbed 14 sen to RM20.36.