Bursa Malaysia extends downtrend in early trade

22 Nov 2019 / 11:30 H.

KUALA LUMPUR: Bursa Malaysia extended yesterday’s downtrend to open lower this morning as weak market sentiment due to the uncertainty over the timing of phase one US-China trade deal curbed interest for equity.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.94 points to 1,589.25 from 1,592.25 recorded at Thursday’s close.

At the opening bell, the barometer index was 2.32 points weaker at 1,589.87.

On the broader market, there were 126 losers and 122 gainers, while 181 counters unchanged, 1,598 untraded and 15 others suspended.

Turnover amounted to 138.77 million shares worth RM64.74 million.

Malacca Securities Sdn Bhd said conditions in the local market turned weaker amid the increased selling activities over the past two sessions that have left the key index’s technical indicators tipping down and looking to retreat further from its toppish condition.

“We continue to think that the pullback is healthy as it would allow the key index to take a breather from its recent gains from the mild portfolio reshuffling activities.

“At the same time, it also appears that the 1,600-1,620 levels are becoming a hurdle for the key index to clear due to the lack of sustainable following,” it said in a note today.

The research firm said conflicting reports on the preliminary US-China trade deal is also leaving the market directionless which is set to continue for now.

“As a consequence, we see the downside risk persisting for now that may even see the key index breaching the 1,590 support to end the week.

“If so, the FBM KLCI could head back to the 1,585-1,587 support, before the 1,580 support comes into play,” it said adding the resistance level remained at 1,600 and 1,610.

Of the heavyweights, Maybank rose two sen to RM8.66, Petronas Chemicals added one sen to RM7.02 while Tenaga was flat at RM13.48.

Public Bank lost 12 sen to RM19.70, CIMB shed five sen to RM5.33 and IHH eased three sen to RM5.42.

Of the actives, Daya Materials inched up half-a-sen to one sen, but Ekovest slipped two sen to 83.5 sen, while Perdana Petroleum, KNM and Iskandar Waterfront inched down half-a-sen each to 45 sen, 39.5 sen and 94.5 sen respectively.

The FBM Emas Index was 13.88 points lower at 11,294.9, the FBMT 100 Index decreased 16.49 points to 11,100.39, the FBM Emas Shariah Index contracted 13.88 points to 11,294.9 and the FBM 70 eased 4.37 points to 14,116.45.

However, the FBM Ace added 0.63 of-a-point to 4,883.41.

Sector-wise, the Financial Services Index fell 40.82 points to 15,525.22, the Plantation Index erased 49.05 points to 7,092.1, but the Industrial Products & Services Index perked 0.21 of-a-point to 151.1.

The physical price of gold as at 9.30am stood at RM189.75 per gramme, down RM1.88 from RM191.63 at 5pm yesterday. — Bernama

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