KLCI loses 1.1% as regional markets track Wall Street selloff

KUALA LUMPUR (Nov 19): The main index at Bursa Malaysia lost 1.1% at mid-morning today, tracking losses at regional markets which followed Wall Street’s sharp selloff overnight.

At 10am, the FBM KLCI lost 17.48 points to 1,587.27.

Market breadth was negative with 544 losers and 314 gainers, while 406 counters traded unchanged. Trading volume was 2.98 billion shares valued at RM1.06 billion,

The top losers included Nestle (M) Bhd, Public Bank Bhd, Panasonic Manufacturing Malaysia Bhd, KESM Industries Bhd, Batu Kawan Bhd, Hong Leong Bank Bhd, Carlsberg Brewery Malaysia Bhd and Hartalega Holdings Bhd.

The actively traded stocks included Kanger International Bhd, AT Systematization Bhd, Vsolar Group Bhd, Metronic Global Bhd, Trive Property Group Bhd, XOX Bhd and Key Alliance Group Bhd.

The gainers included Malaysian Pacific Industries Bhd, Amway (M) Holdings Bhd, Vivocom International Holdings Bhd, ViTrox Corp Bhd and Sarawak Oil Palms Bhd.

Reuters said Asian stocks followed Wall Street’s sharp selloff on Wednesday as concerns about rising coronavirus infections and new shutdowns in major US cities hosed down earlier investor enthusiasm about Covid-19 vaccine developments.

Bearish sentiment triggered a late-session retreat in stock markets on Wednesday after a surge in new Covid-19 infections prompted New York City, which has the largest school district in the United States, to halt in-person learning starting from Thursday, it said.

Rakuten Trade said Wall Street declined as the US is grappling with rising Covid-19 cases overshadowing positive vaccine developments.

It said that as a result, the Dow Jones Industrial Average, which was in positive territory during the early session, lost 345 points and again failed to surpass the 30,000 mark.

“Therefore, we reckon regional markets to be mixed today.

“Back home, we should see continued volatility amongst the rubber glove counters as news on the vaccine is becoming a reality.

“The FBM KLCI, which was hanging stubbornly above the 1,600 level yesterday, may again see some pressure today and if broken, the next support is at 1,590.

“Meanwhile, we noticed that crude palm oil (CPO) remains persistently strong and recent good results from planters should attract interests back into the sector,” it said.

Source: TheEdgeMarkets