KLCI falls 0.22% to 1,580.40 in early trade after widened MCO announcement

KUALA LUMPUR (May 11): The FBM KLCI fell by 0.22% in early trade after an announcement last night that the movement control order (MCO) will be imposed nationwide with stricter curbs in place.

The benchmark index dropped 3.52 points to 1,580.40 points this morning, in line with a slump seen in regional markets.

Widetech (Malaysia) Bhd was the bourse’s top gainer so far, rising by 35 sen or 16.28% to RM2.50.

Meanwhile, Malaysia Pacific Industries Bhd was the top loser, shedding 68 sen or 1.77% to RM37.72.

The most actively traded stock this morning was Pegasus Heights Bhd, which was unchanged at 20 sen with 118.22 million shares changing hands.

“The KLCI will continue to decline following the announcement of the nationwide MCO 3.0, which should last until June. Therefore, we believe the KLCI will hover around the 1,580-1,590 [range] today,” said Rakuten Trade’s research team in a note today.

Bloomberg reported that stocks in Japan, Australia and South Korea fell this morning in tandem with a 2.6% decline in the Nasdaq 100 Index amid concerns about inflation fuelled by rising commodity prices. The inflation poses a threat to the longer-term outlook for tech company revenues.

“The benchmark S&P 500 Index fell from an all-time high, while the Dow Jones Industrial Average briefly topped 35,000 for the first time,” it said.

Source: TheEdgeMarkets