KLCI down 0.64% amid Wall St fall

Published On: August 12, 2020Categories: Stocks & Shares1.6 min read

Stocks in Asia were down after Wall Street retreated on doubts over the timing of US stimulus package

The FBM KLCI (Malaysia) fell 0.64% at mid-morning as sentiment remained fragile and subdued, tracking the overnight fall at Wall Street and listless regional markets today.

At 9.48am, the FBM KLCI fell 10.01 points to 1,554.73.

Market breadth was negative as losers thumped gainers by 837 to 157, while 229 counters traded unchanged. Trading volume was 6.31 billion shares valued at $0.52 billion.

The top losers included Kossan Rubber Industries Bhd, Top Glove Corp Bhd, Supermax Corp Bhd, Hartalega Holdings Bhd, Rubberex Corp Bhd, Comfort Gloves Bhd and Careplus Group Bhd.

The actively traded stocks included Sapura Energy Bhd, Eduspec Holdings Bhd, Pegasus Heights Bhd, NetX Holdings Bhd, Lambo Group Bhd, AT Systematization Bhd, Velesto Energy Bhd, Borneo Oil Bhd, Kanger International Bhd and Priceworth International Bhd.

The gainers included Heineken Malaysia Bhd, Malaysian Pacific Industries Bhd, Kuala Lumpur Kepong Bhd, Duopharma Biotech Bhd, Dutch Lady Milk Industries Bhd, Pharmaniaga Bhd, DKSH Holdings (M) Bhd, Carlsberg Brewery Malaysia Bhd, Genting Bhd and Public Bank Bhd.

Bloomberg said Asian stocks drifted Wednesday after their US peers retreated on doubts over the timing of a spending package from Washington.

Gold steadied after tumbling the most in seven years, it said.

Hong Leong IB Research said following Bursa Malaysia’s recent frenzy and irrational trading volume lately, broader market sentiment is likely to remain subdued in the next few days amid extended profit-taking consolidation, particularly on penny stocks and lower liners.

However, we reckon that rotational sectoral buying (e.g. energy, financial services, health care, technology ACE etc.) will continue to keep overall trading volume buoyant. Overall, there is no change to the general trend for the KLCI as it is still locked in a sideways band with a slight negative bias in wake of the ongoing domestic political uncertainty, a weak August reporting season, the increasing numbers of new Covid-19 clusters, and intensified US-China geopolitical tension, Bloomberg said.

Key supports are situated at 1,511-1,549-1,556 whilst resistances fall on 1,579-1,591-1,618 levels, it said.

About the Author: Jonathan Adams

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