Shares slip as hopes of global economic recovery dim

KUALA LUMPUR: Bursa Malaysia ended in the red yesterday, reversing gains recorded in the morning, as the latest wave of the Covid-19 pandemic continued to dim hopes of a global economic recovery.

At the close, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 5.15 points to 1,495.20 a er opening 5.2 points higher at 1,505.48.

Losers overtook gainers 737 to 291, while 440 counters were unchanged, 682 untraded and 79 others suspended.

Total volume declined to 4.66 billion shares worth RM3.43 billion compared with Tuesday’s 4.71 billion shares worth RM4.10 billion.

ACE Market stocks continued their downtrend with the market index dipping 2.14 per cent, while in terms of sector, healthcare and utilities were the biggest laggards, slipping 1.44 per cent and 1.35 per cent, respectively.

An analyst said the bearish momentum was caused by dimming hopes that the economic recovery would be on track this quarter as more countries were expected to strengthen their movement control measures.

“With France set to announce new Covid-19 lockdowns and Germany moving to close restaurants for a month to curb rising Covid-19 cases, it has put Europe under new pressure.

“Malaysia is not exempted from the third wave of Covid19 as Selangor, Kuala Lumpur and Putrajaya as well as Sabah have been under conditional and enhanced movement control orders,” she said.

The analyst said that while health authorities were positive the number of cases could be contained in a month’s time, the outlook for this year had continued to be on a downward momentum.

“This has led to lacklustre equity demand from foreign and retail investors as uncertainty continues to loom and funds shi to safe-haven assets,” she said.

Besides that, Budget 2021 to be unveiled on Nov 6 as well as the US presidential election on Nov 3 will continue to influence market trends.

Yesterday, Finance Minister Datuk Seri Tengku Zafrul Aziz expressed confidence that the budget would not be politicised.

This followed the decree by the Yang di-Pertuan Agong for all politicking to stop to ensure the country’s economic recovery and stability.

In a statement by the Comptroller of the Royal Household of Istana Negara, the King advised Members of Parliament to fully support the budget for the sake of harmony and the rakyat’s livelihoods as well as for economic recovery,

On the heavyweights, Hartalega fell 26 sen to RM18.028, IHH shed five sen to RM5.10, and MISC dropped four sen to RM6.75. — Bernama