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KUALA LUMPUR (Oct 26): The low lines in Bursa Malaysia saw increased selling pressure on bearish technical momentum.
At 10.56am today, the FBM ACE index was the biggest loser among the 29 indices on the local stock market. It was down 3.15% or 334.29 points to 10,272.48.
Meanwhile, the FBM Small Cap Index was trading 0.98% or 130.96 points below 13,282.70. It was the seventh largest decline among the Bursa indices at the time of writing.
Meanwhile, the FBM KLCI was down 0.71% or 10.56 points to 1,484.08.
It is worth noting that only five indices showed any kind of profit. The indices were the REIT Index, Plantation Index, Technology Index, FBM Palm Oil Plantation-NC and FBM Asian Palm Oil Plantation (RM) (FBMAPMYR).
The overall market breadth was also negative, with 725 counters showing declines, 383 counters trading unchanged, and only 195 counters showing gains.
In terms of trading volume, 2.97 billion shares worth RM2.08 billion were traded at the time of writing.
Meanwhile, in terms of actively traded low lines, Vsolar Group Bhd, XOX Bhd and Kanger International Bhd topped the list.
Vsolar saw 158.71 million shares made, XOX had 53.69 million of its shares traded, and Kanger International saw 320.66 million shares traded.
Top value losers among ACE market companies included Careplus Group Bhd, Greatech Technology Bhd, ES Ceramics Technology Bhd, Focus Dynamics Group Bhd, and HLT Global Bhd.
In particular, Careplus was down 4.5% or 17 sen at RM3.61, while Greatech was down 2.11% or 17 sen at RM7.89.
ES Ceramics concluded the first half of the trading day 11.89% or 8.5 sen lower at 63 sen, while Focus Dynamics was 8.07% or 6.5 sen lower at 74 sen. The HLT was down 2.47% or four sen at RM 1.58.
TA Securities noted that bearish technical momentum had worsened following last Friday’s sell-off due to events related to a possible emergency at the time, prompting a further downward correction than could have been expected this week.
“However, given that the domestic political situation is likely to maintain the status quo due to the emergency declaration that triggers the suspension of Parliament and avoids any objections to the 2021 Budget, the additional drastic correction should encourage bargain hunters to accumulate for a recovery in the future “, said then the house of investigation.
“We expect the healthcare and technology sectors to continue to outperform the overall market,” he said.
PublicInvest Research said the FBM KLCI was still under selling pressure.
“At this juncture, the index runs the risk of trending down towards subsequent support levels in case the short-term move is not sustainable above its immediate support. [level] of 1,485.
“Support levels for the index are at 1,485, 1,455 and 1,430, while resistance levels are at 1,515, 1,551 and 1,580,” he said.
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