Bursa opens higher but retreats thereafter

KUALA LUMPUR (Nov 16): Bursa Malaysia opened higher today but retreated thereafter as some investors remained cautious over the global economic outlook despite optimism about the Covid-19 vaccine lent support to the market, a dealer said.

At 9.15am, the FBM KLCI had eased 0.88 of a point to 1,588.81 after opening 3.66 points higher at 1,593.35.

Gainers led losers 403 to 245, while 382 counters were unchanged, 1,134 untraded and 19 others suspended.

Total volume stood at 1.71 billion worth RM465.69 million.

Malacca Securities Sdn Bhd said the three consecutive days of foreign fund inflow into the local market last week will continue to lend support for any weakness over the near term.

“The stronger-than-expected third quarter of 2020 (3Q20) gross domestic product (GDP) boosted the FBM KLCI to recover most of its intraday losses last Friday.

“With buying momentum appears to have yet to taper, further upsides remain to be seen at the next resistances at 1,600-1,615. Immediate support is pegged at 1,540, followed by 1,520,” it said in a research note today.

Meanwhile, the research firm viewed the conclusion of the Regional Comprehensive Economic Partnership (RCEP) bodes well for Malaysia, alongside with 14 nations, as it will strengthen the trade partnership between these countries.

“Moving forward, investors will be focusing on the barrage of corporate earnings releases, which expect to record a sharp quarter-on-quarter recovery,” it added.

Among the heavyweights, Maybank slipped five sen to RM7.88, Public Bank declined six sen to RM17.70, TNB fell two sen to RM11.30, Top Glove decreased 10 sen to RM7.68, and Petronas Chemicals lost three sen to RM6.75.

Of the actives, AT Systematization rose 3.5 sen to 29 sen, Metronic Global and Nexgram earned half a sen each to 17.5 sen and 6.5 sen respectively, while MTouche added 1.5 sen to 8.5 sen.

On the index board, the FBM Emas Index was 4.21 points higher at 11,414.20, the FBM Emas Shariah Index gained 3.88 points to 13,330.91, the FBMT 100 Index improved 1.33 points to 11,205.37, the FBM 70 increased 31.49 points to 14,654.47, and the FBM ACE bagged 61.49 points to 11,286.24.

Sector-wise, the Industrial Products and Services Index earned 0.35 of a point to 156.87, the Plantation Index deaclined 8.61 points to 7,295.59 and the Financial Services Index advanced 2.75 points to 13,570.76.

Source: TheEdgeMarkets