Bursa Malaysia retreats, led by energy, plantation countries

02 Dec 2020 / 10:41 H.

KUALA LUMPUR: Bursa Malaysia retreated from the 1,600 level as investors looked for profits after recording 2.5 per cent gains yesterday.

At 9.10am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) declined 7.96 points to 1,594.30, dragged mainly by weaknesses seen in the energy and plantations sectors.

The index opened 2.23 points higher at 1,604.49 from Tuesday’s close of 1,602.26.

On the broader market, gainers outpaced losers 332 to 235 while 365 counters were unchanged, 1,177 untraded and 16 others suspended.

Volume stood at 604.56 million worth RM303.51 million.

Both the Brent and West Texas Intermediate (WTI) traded negatively amid uncertainty over an oil cartel meeting to decide on oil production cuts with the latest shocking rumours that Saudi Energy Minister Prince Abdulaziz Salman has offered to step down as a co-chair of OPEC+’s joint ministerial monitoring committee (JMMC).

At press time, the Brent and WTI stood lower at US$47.08 and US$44.15 per barrel.

Meanwhile, Malacca Securities said India’s move to reduce the import duty for crude palm oil (CPO) bodes well for the plantation sector as prices remain firm above RM3,300 per tonne.

“Meanwhile, we continue to like the construction sector as a prime beneficiary of Budget 2021 as construction activities shift into higher gear,“ it said in a note.

Overall, the FBM KLCI performed a swift recovery as the key index recouped most of its previous session losses to re-claim the 1,600 psychological level yesterday.

It said investors will continue to focus on the economic recovery progress.

“Meanwhile, we believe that the lower liners will continue to enjoy their upward momentum as liquidity remains well on the equities market with investors capitalising on the positive market sentiment,” it said.

Overseas, the US stocks rose as the Dow gained 0.6 per cent, while S&P500 (+1.1 per cent) and Nasdaq (+1.3 per cent) hit fresh records, ignited by economic recovery hopes following Pfizer and BioNTech’s application for regulatory approval for their Covid-19 vaccine in the European Union.

CGS-CIMB said yesterday’s wild swings likely suggest that players are still juggling for positions.

‘If the index can overcome the 1,618-1,625 critical resistance in the days ahead, then we believe that the long-term bull market is underway.

“Until then, the market may still continue its consolidation in the near term albeit in a wider range of 1,550-1,615,“ it added.

Among heavyweights, Top Glove depreciated 13 sen to RM6.66, Tenaga Nasional dipped 18 sen to RM10.68, Petronas Gas dropped 30 sen to RM17.50, Hartalega declined 16 sen to RM14.30 and Sime Darby Plantation down six sen to RM5.02.

In contrast, Maybank gained three sen to RM8.22 and RHB went up four sen to RM5.34.

Among the actives, BioAlpha was flat at 35.5 sen, AT Systematization inched down one sen to 20 sen and Bumi Armada unchanged at 32 sen.

On the index board, the FBM Emas Index eased 32.74 points to 11,536.89, the FBMT 100 Index lost 36.25 points to 11,296.53 and the FBM Emas Shariah Index dropped 61.44 points to 13,310.69.

The FBM 70 rose 30.61 points to 14,979.15 and the FBM ACE slashed 58.48 points to 10,713.43.

Meanwhile, the Industrial Products and Services Index inched down 0.29 of-a-point to 166.83, the Plantation Index was 12.05 points lower at 7,338.23 and the Financial Services Index improved 36.41 points to 14,244.69.-Bernama

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