KLCI marginally lower in early trade

KUALA LUMPUR (July 2): Bursa Malaysia was lower in early trade as investors were spooked by the enhanced movement control order (EMCO) announced yesterday in a large part of Selangor and 15 localities in Kuala Lumpur.

At 9.10am, the benchmark FBM KLCI had eased by 0.06 of a point to 1,534.17 from yesterday’s close at 1,534.23.

The market bellwether opened 0.53 of a point lower at 1,533.70.

On the broader market, losers outpaced gainers 210 to 145, while 262 counters were unchanged, 1,548 untraded and 11 others suspended.

Turnover stood at 483.15 million units valued at RM186.83 million.

Malacca Securities said the imposition of the EMCO from tomorrow until July 16 due to continued high infection rates may further weigh on investors’ sentiment.

Malaysia recorded 6,988 new Covid-19 cases yesterday, with Selangor still posting the highest number.

Crude palm oil (CPO) prices surged after India reduced the import duty on CPO to 10%, it said in a note.

Meanwhile, Brent crude price climbed mildly after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) postponed their decision on the oil production plan amid recovering demand for oil, while market participants expect an increase in oil output going forward.

“Hence, the oil and gas (O&G) sector may trade actively given the firm Brent oil price in the US$75 (about RM312.45) zone.

“Besides, bargain-hunting activities may emerge for some bashed-down counters in sectors such as essential consumer and transportation and logistics as well as technology stocks amid positive sentiment from Wall Street,” it added.

US stock markets crept higher overnight as the Dow added 0.4%, anchored by solid IHS Markit Manufacturing Purchasing Managers’ Index (PMI) data for the US in June 2021 at 62.1, the highest since May 2007.

IHS Markit said the most marked deterioration in conditions among ASEAN countries was seen in Malaysia, where the headline index dropped sharply to a near-series low of 39.9 in June 2021 from 51.3 in May 2021, reflecting stricter Covid-19 containment measures.

Heavyweights Top Glove Corp Bhd and Telekom Malaysia Bhd (TM) dropped six sen to RM4.01 and RM6.08 respectively, while Hartalega Holdings Bhd declined nine sen to RM7.05, IOI Corp Bhd was two sen lower at RM3.77 and RHB Bank Bhd lost three sen to RM5.38.

Conversely, IHH Healthcare Bhd gained seven sen to RM5.63 and Malayan Banking Bhd (Maybank) rose two sen to RM8.13.

Of the actives, Serba Dinamik Holdings Bhd improved one sen to 39 sen, Sarawak Consolidated Industries Bhd rose seven sen to 82 sen and KPower Bhd added four sen to 94.5 sen.

On the index board, the FBM Emas Index gave up 9.51 points to 11,163.84, the FBMT 100 Index fell 8.92 points to 10,877.56 and the FBM Emas Shariah Index decreased 16.69 points to 12,170.11.

The FBM ACE retreated 26.85 points to 7,079.65 and the FBM 70 was 45.30 points weaker at 14,449.09.

Sector-wise, the Financial Services Index edged up 5.28 points to 15,135.41, the Industrial Products and Services Index was 0.16 of a point lower at 186.44, and the Plantation Index rose 1.05 points to 6,446.14.

Source: TheEdgeMarkets