Wednesday 07 Jun 2023
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KUALA LUMPUR (Oct 13): The main index at Bursa Malaysia remained lacklustre at the midday break on Tuesday in line with regional markets, exacerbated by lingering political uncertainties as well as the conditional movement control order (CMCO) announced yesterday.

With speculation mounting around the claim made by opposition leader Datuk Seri Anwar Ibrahim that he had the support to form a new government and his meeting with the King earlier this morning, all eyes will be on a press conference called by Anwar at 2pm today.

At 12.30pm, the FBM KLCI dipped 5.35 points to 1,513.08.

Losers led gainers by 375 to 223, while 652 counters traded unchanged. Trading volume was 3.44 billion shares valued at RM1.88 billion.

The top losers included MISC Bhd, Malayan Banking Bhd, Digi.Com Bhd. British American Tobacco (M) Bhd, Dutch Lady Milk Industries Bhd, Kuala Lumpur Kepong Bhd, QL Resources Bhd, Carlsberg Brewery Malaysia Bhd and Sarawak Oil Palms Bhd.

The actively traded stocks included Advance Synergy Bhd, AT Systematization Bhd, Vsolar Group Bhd, AirAsia X Bhd and mTouche Technology Bhd.

The gainers included Malaysian Pacific Industries Bhd, Rubberex Corp Bhd, Nestle (M) Bhd, Panasonic Manufacturing Malaysia Bhd, ViTrox Corp Bhd, Supermax Corp Bhd, Scientex Bhd, Amway (M) Holdings Bhd and Kobay Technology Bhd.

Reuters said Asian shares slipped on Tuesday, brushing off a firmer Wall Street lead as China's post-holiday rally cooled, although a buoyant tech sector and fresh optimism about US stimulus are expected to continue to support sentiment.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped into negative territory in the Asian session, down 0.09%, it said.

Hong Leong IB Research said the focus today will be on domestic politics as Anwar was granted an audience with the King to prove his claim of having a formidable majority to form the next government.

“On top of the lingering political uncertainty, surging Covid-19 cases and clusters could pose downside economic risks, considering the soaring cases in Klang Valley (which makes up ~41% of national GDP).

“Sector-wise, major beneficiaries from the soaring Covid-19 cases in Malaysia are gloves, technology, telcos and couriers while [the] sectors [that are] most vulnerable appeared to be aviation, retail, F&B, gaming, malls and hotels.

“Key supports fall on 1,499-1,508 while resistances are situated at 1,535-1,563 levels,” it said.

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