Bursa Malaysia extends loss on caution ahead of general election
KUALA LUMPUR: Bursa Malaysia extended its loss yesterday amid a weaker regional market performance and as cautious investors offloaded shares ahead of the 15th General Election (GE15), a dealer said.
At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) dipped 2.16 points, or 0.15 per cent, to end at 1,448.38, which was also its intraday high, compared to Tuesday’s close of 1,450.54.
The market bellwether opened 3.04 points easier at 1,447.50 and hit an intraday low of 1,440.59 at the midday session.
On the broader market, decliners outpaced gainers 493 to 351, while 401 counters were unchanged, 1,080 untraded, and 13 others suspended.
Turnover eased to 2.32 billion units valued at RM1.71 billion versus 2.78 billion units valued at RM1.68 billion on Tuesday.
Malacca Securities Sdn Bhd senior analyst Kenneth Leong told Bernama the FBM KLCI has remained downbeat due to selling pressure in selected heavyweight banking, plantation, and glove stocks.
“Looking ahead, we reckon that the fragile sentiment may continue as we approach the end of the holiday-shortened trading week ahead of GE15.
“For now, the key focus is on the outcome of GE15, while externally, investors will be keeping an eye on the US manufacturing and industrial production data,” he said, adding that technically, the immediate resistance level is seen at 1,465 while support is located at 1,440.
He also attributed the weakness in the region’s stock markets to the escalating geopolitical tension after a Russian-made rocket landed and claimed two lives in eastern Poland, near Ukraine.
Rakuten Trade Sdn Bhd vicepresident of equity research Thong Pak Leng reckons investors are waiting for further developments on the geopolitical front for direction on investment decisions, both globally and regionally.
“On the domestic front, we expect some bargain-hunting activities to emerge due to the current cheap valuations. Lastminute buying may happen before the market closes on the last trading day before election day. It had happened before in previous elections,” he noted.