Bursa Malaysia opens lower on Budget 2021 vote concerns

24 Nov 2020 / 11:20 H.

KUALA LUMPUR: Bursa Malaysia opened on a lower note today on lingering concerns over the Budget 2021 voting on Thursday.

As at 9.17am, the benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) shed 3.75 points to1,593.73 compared with yesterday’s close of 1,597.48.

Gainers and losers were neck to neck at 322 and 388 while 409 counters were unchanged, 1,257 untraded and 24 others suspended.

Total volume stood at 1.62 billion worth RM785.67 million.

Malacca Securities, in a research note today, said the FBM KLCI was traded in a lacklustre manner as the key index re-tested the 1,600 psychological level.

“As there was absence of a follow-through buying beyond the aforementioned level, we reckon that the local bourse will be poised for further consolidation,“ it said.

It added that at the same time, the uncertainty surrounding the vote on Budget 2021 is also keeping investors on their toes.

“The lower liners are looking increasingly toppish which may prompt profit-taking activities over the near term,“ it said.

Meanwhile, the energy sector became the best performing sector at the opening as benchmark Brent crude rose to an eight-month high on global optimism.

Bloomberg reported that global oil prices hit the highest level since March as hopes for a vaccine rollout within weeks brightened the outlook for fuel consumption.

“Brent crude futures rose 2.5 per cent in London, following a broader market rally after AstraZeneca Plc became the latest company to report a vaccine that protects most people.

“The prospect of a treatment is starting to reshape the oil futures curve, with some near-term prices rebounding more than later-dated ones, a bullish structure known as backwardation that signals investors expecting supply and demand to return to balance,“ it said.

As at 9.30am, Brent crude stood at US$46.03 per barrel.

On Bursa Malaysia, heavyweights Top Glove led the losers as it shed 43 sen to RM6.92 following news of temporary closure at its factories as its workers were infected by COVID-19.

It is then followed by Petronas Dagangan which declined 92 sen to RM21.18 and Hap Seng Consolidated which slipped 13 sen to RM8.36.

Among the actives, Pegasus Heights was flat at 30 sen, Vivocom reduced 23 sen to 99 sen and P.A resources dipped 1.5 sen to 13.5 sen.

On the index board, the FBM Emas Index was 21.80 points lower at 11,468.87, the FBMT 100 Index shed 22.80 points to 11,468.87, the FBM Emas Shariah Index reduced 58.14 points to 13,211.50, and the FBM 70 trimmed 15.42 points to 14,761.15.

The FBM ACE lost 109.97 points to 10,960.84, the Industrial Products and Services Index was 0.48 of-a-point lower at 159.40, the Plantation Index trimmed 0.29 of-a-point to 7,341.07, while the Financial Services Index rose 64.23 points to 14,034.97.-Bernama

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