Bursa Malaysia ends lower amidst growing Covid-19 cases
Bursa Malaysia ended the day lower as some investors were reluctant to take risks following the acceleration of Covid-19 cases globally.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI), however, managed to close above the crucial 1,500-point level on selective buying, mainly in rubber glove makers and plantation counters.
At 5 pm, the barometer index lost 4.41 points to 1,502.63 from Tuesday’s close of 1,507.04.
The index opened 0.34 of-apoint better at 1,507.38 and moved between 1,496.99 and 1,507.38 throughout the session.
On the broader market, losers outpaced gainers 556 to 409, while 412 counters were unchanged, 554 untraded and 22 others suspended.
Total volume dwindled to 5.39 billion shares valued at RM2.60 billion compared to 8.75 billion shares worth RM2.98 billion on Tuesday.
Global Covid-19 infections worldwide has surpassed nine million cases, half of which are in Europe and the US.
AxiCorp global chief market strategist Stephen Innes said the weight of the Covid-19 headlines finally had a negative impact on markets.
“There are so many economists coming out almost sounding negative regarding the second half (2020) economic outlooks,” he said, adding that eventually this would affect investors’ sentiments.
Dragging the FBM KLCI down, Petronas Dagangan lost RM1.04, following reports that Petroliam Nasional Bhd (Petronas) is withdrawing its appeal at the Court of Appeal over Sarawak’s sales tax dispute.
The Sarawak government and Petronas will settle their dispute over a RM2 billion state sales tax (SST) out of court, with the latter expected to withdraw its appeal at the Court of Appeal.
In constrast, IOI Corp rose six sen to RM4.40 and Hartalega added 10 sen to RM12.10 on continuous demand for rubber gloves amidst the growing Covid19 cases.
KLK gained 22 sen to RM22.34 and Sime Darby Plantation edged up two sen to RM4.95 on bullish prospects for crude palm oil prices.
Among actives, Trive Property was flat at one sen, while AT Systematization and MQ Technology fell two sen each to nine sen and 4.5 sen respectively.
On the index board, the FBM Emas Index shed 19.05 points to 10,572.52, the FBMT 100 Index went down 17.85 points to 10,423.98, while the FBM 70 was 28.86 points higher at 12,951.24.
The FBM Emas Shariah Index decreased 24.02 points to 12,000.97 and the FBM ACE dipped 179.72 points to 6,102.92.
Sector-wise, the Industrial Products and Services Index edged down 0.60 of-a-point to 135.49, the Plantation Index climbed 40.87 points to 6,775.41 and the Financial Services Index improved 12.81 points to 12,885.33.